How much does it cost to hire a general contractor to manage subcontractors?

Usually 10–20% of the construction cost (This Old House; Bob Vila; SVN Builder). On a $60,000 project that is $6,000–$12,000. Small or complicated jobs land near the top; large, simple ones near the bottom.

What is the difference between a contractor’s fee and markup?

The fee is what the contractor keeps for overhead and profit. Markup is how it gets charged in a fixed-price bid: added onto sub prices and materials, often 10–20% in total (Baldwin Builders). In a cost-plus contract the fee is a separate line on top of actual costs.

Is cost-plus or fixed price better for me?

Fixed price gives you a known total when the drawings are complete. Cost-plus fits remodels with unknowns behind the walls, but you carry the overrun risk. If you choose cost-plus, ask for a fixed fee or a not-to-exceed cap.

Can I just pay someone to find good subcontractors?

Yes. Owner’s representatives and consultants do this for about $75–$300 an hour (Inventure Properties; Terrapin, 2026). We estimate 3–6 hours per trade. You then hire, pay and schedule each trade yourself.

Do some contractors charge more than 20%?

Some do, especially on small or complicated jobs where the management work doesn’t shrink with the budget. Builders describe cost-plus fees of 15–20% (Baldwin Builders). If a quote is above 20%, ask what it covers.

Hire and Manage Subcontractors cost

Set your budget and how much you hand off. See the fee, and what it buys.

A general contractor who hires and runs your subcontractors usually charges 10–20% of the construction cost, so $6,000–$12,000 on a $60,000 project. A construction manager who coordinates while you sign each sub charges less (we show 3–15%), and an advisor who only finds and vets subs bills about $75–$300 an hour.

What’s included

Finding, bidding and hiring the subcontractors (full GC and construction manager)
Scheduling trades in order and booking inspections
Site supervision, insurance and cleanup (full GC)
One contract and one warranty to call (full GC)

Not included

The construction itself: each trade’s labor and materials. That is your budget.
Permit fees paid to the city (passed through to you)

Where these numbers come from

Every price above comes from the sources below, checked Nov 2026. Where they disagree we show the wider range and say why. With the starting inputs and national prices, the estimate is $6,000–$12,000. The calculator above updates for your choices and ZIP code.

Sources and the figures we used
Source	What we used	Checked
This Old HouseTips for Hiring a Home Renovation Team	A builder quoted: professional management adds 10%-20% to the job; subs and materials are 60%-70% of it	2026-11-09
Bob VilaHow Much Does It Cost to Build a House?	Hiring a general contractor accounts for 10%-20% of total project cost	2026-11-09
SVN BuilderFixed-Price vs Cost-Plus Contracts 2026	Cost-plus fees typically 10%-20% of actual cost; small projects sit higher	2026-11-09
Baldwin BuildersUnderstanding Construction Contracts (Apr 2026)	Fixed-price bids carry a 10%-20% margin; cost-plus fees typically 15%-20%	2026-11-09
Inventure PropertiesHow Much Does an Owner’s Representative Cost?	Owner’s rep 1%-5% of budget (small projects at the high end); hourly about $75 (project staff) to $250+ (senior), some up to $350	2026-11-09
Terrapin Construction GroupOwner’s Representative Cost in 2026	Owner’s rep 1%-5% of construction cost; advisory work $150-$300 per hour	2026-11-09
BuildX ProOur bracket: construction manager fee	3%-15% of construction costWe found no non-marketplace source for a residential construction manager fee. A construction manager does more than an owner’s rep (1%-5%, small jobs at the top) and carries less risk than a general contractor (10%-20%), so we show the span between them.	2026-11-09
BuildX ProOur assumption: hours to find and vet one trade	3-6 hours per tradeNo source publishes hours per trade. We assume a call with each bidder, comparing 2-3 bids, and checking license, insurance and references.	2026-11-09
BuildX ProOur judgement: where you land inside the range	Typical point starts mid-range; +4 points of the range per trade over 4 (minus under 4), +10 under $25,000, -10 over $250,000, +5 over 26 weeks, +15 when a construction manager pulls the permit; kept between 15% and 85% of the rangeThese weights only move the typical number, never the range. Small jobs sit higher because management work does not shrink with the budget (SVN Builder; Inventure).	2026-11-09

Your project

Construction budget

What the work itself costs: every trade’s labor and materials, before any management fee.

How much should they handle?

This sets how the fee is charged. It is the biggest choice on this page.

Find and vet subsHourly. You hire and run the trades yourself.Run the schedule3–15%. You sign each sub; they coordinate.Full general contractor10–20%. One contract, one warranty.

Trades involved

Plumber, electrician, tile, drywall, painter… each one is another bid, contract and handoff.

How long the work runs

Jobs over about six months land higher in the fee range: more site visits, more scheduling.

Your ZIP code

Adjusts labor to local wages. Leave it empty for national prices.

Get quotes from pros near you

Your estimate ($6,000–$12,000) goes with the request, so pros start from the same numbers.

Estimate lines
General contractor fee (overhead and profit)10–20% of $60,000. The typical number is our judgement: more trades, a budget under $25,000 or a job over 26 weeks move it up; a budget over $250,000 moves it down.	$6,000–$12,000

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Hire and Manage Subcontractors cost

What’s included

Not included

Fee, markup and cost-plus: three ways to be charged

When paying the fee is worth it

Before you sign: questions to ask

Frequently asked questions

Where these numbers come from

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