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.
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
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…
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%.