How General Contractors Calculate
Home Addition Costs?
By: Mark J. Donovan
When General Contractors develop home addition building costs for a home
project, their estimate usually consists of two parts - Labor and Material.
There is also a hidden cost factored into both these numbers as well - General
Contractor Profit. Typically a General Contractor is looking to make between
20-30% profit margin on his material and labor costs.
Typically the General Contractor should be able to turn around a home addition
cost estimate within a week as they frequently have a database of material
costs and they know their labor rates. Frankly, once they have your
requirements on your home addition project, they can plug the specifics into
their home addition cost estimator or calculator spreadsheet tool and have a
good home addition cost estimate on your project within minutes.
Carefully read over all of the specifics of the home addition
cost estimate, looking particularly at the high price material items.
Frequently you can negotiate on these costs or you can consider alternative
materials, e.g. window manufactures or types.
|Regarding the labor costs, you may consider providing
your own sweat equity to reduce these costs.
HomeAdditionPlus Bid Sheets for your next Home Addition Project.
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selection process and will save you money. You provide the Home Addition Bid Sheet to the prospective contractor and
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assess if the contractor is right for your project.
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