Contractor's profit margin on new construction - Posted by Ken


#1

Posted by Yianni on December 22, 1998 at 23:25:04:

The 20-30 does sound a little too high from what I figure, mainly because common sence tells me that the higher % should go in the smaller projects.

I own a “design/build” remodeling co., and the overall mark up for most professional outfits is from 30% to 36%, and that includes P&O. The profit portion is around 12%+/-gross. To my knowledge the % of new home builders is a little lower because the projects tend to be more complicated.


#2

Contractor’s profit margin on new construction - Posted by Ken

Posted by Ken on December 22, 1998 at 20:49:11:

Is anyone familiar with the margin of profit most cantractors seek for new residential construction?

I’d be curious to know what percentage of a new home’s cost can be attributed strictly to contractor profit.

My thanks in advance.

Ken


#3

Have spreadsheets of home construction break-down - Posted by Harvey Carroll, Jr.

Posted by Harvey Carroll, Jr. on December 23, 1998 at 19:45:53:

I can send you “excel 97 spreadsheets” of cost breakdowns. All you have to do is plug in a number. Then just add you 15% or what ever you wish. I also have construction bar/pert charts of the step by step process of home construction.

I would be interested in trading my information with anything that would help me in real estate…


#4

Re: Contractor’s profit margin on new construction - Posted by Charlie (Fla.)

Posted by Charlie (Fla.) on December 22, 1998 at 21:29:33:

Small house’s and little spec homes (1280 to 1400 sq.
ft.) contractor’s profit is 12% to 15%. The larger custom homes can bring as high as 20% to 30%.