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General Contracting Services: Key Insights on General Contractor Costs and the Construction Process

Oct 21, 2024

4 min read


Three men discussing the layout for a construction project.

General contracting services are crucial in the construction industry. General contractors manage the daily operations of a construction site, ensuring that everything, from hiring subcontractors to sourcing materials, runs seamlessly. Their extensive knowledge of various roles within the contracting field enables them to identify the right specialists for each specific project.


Understanding General Contracting Services

General contracting services, encompass a wide range of responsibilities that include project planning, coordination, and supervision. General Contractors (GCs) act as the primary point of contact, managing all aspects of a construction project. From hiring subcontractors to overseeing construction site work, their role is essential in ensuring that every phase of the project runs smoothly. This encompasses construction planning, which involves defining the project scope, timelines, and budget management.


Responsibilities of General Contractors

  1. Project Supervision: GCs oversee day-to-day operations on the construction site, ensuring that the work meets safety standards, building codes, and the client's needs. They act as the primary point of contact between the client and the construction team, facilitating communication and decision-making.

  2. Managing Subcontractors: GCs hire and manage subcontractors for specialized tasks like plumbing, electrical, and carpentry. They coordinate the work of subcontractors to ensure quality, adherence to safety standards, and timely completion, while preventing scheduling conflicts and delays.

  3. Budget and Cost Management: GCs are responsible for providing accurate construction estimates, managing project costs, and ensuring that the project stays within budget. They monitor expenses and allocate resources efficiently to avoid overspending.

  4. Construction Scheduling Services: Creating and maintaining a detailed construction schedule is a key part of a GC's job. They develop timelines for each phase of the project and work to ensure that it is completed on time, adjusting schedules as needed to accommodate changes.

  5. Problem Solving on Site: GCs handle unexpected challenges that arise during the construction process, such as weather-related delays or material shortages. Their role is to find solutions quickly and efficiently to keep the project on track.


General Contractor Pay and Costs

The pay and costs associated with hiring general contractors (GCs) can vary based on factors like experience, location, and the complexity of the project. Here’s a breakdown from ZipRecruiter:


Annual Salary

Monthly Pay

Weekly Pay

Hourly Wage

Top Earners

$98,690

$8,224

$1,897

$47

75th Percentile

$73,500

$6,125

$1,413

$35

Average

$60,279

$5,023

$1159

$29

25th Percentile

$44,400

$3,700

$853

$21

  1. General Contractor Pay:

    • Annual Salary: GCs generally earn between $29,000 and over $106,000 per year, depending on their level of experience and the size of the projects they oversee.

    • Hourly Rate: In California, as of October 2024, the average hourly rate for a GC is $29, according to ZipRecruiter, with rates ranging from $14 to $51 per hour depending on the location, project demands, and the GC’s expertise.

  2. General Contractor Costs: GCs usually charge a percentage of the total project cost. This percentage can range from 5% to 20%, influenced by the project’s size and complexity.

    • Smaller Projects: GCs may charge closer to the higher end (10%-20%) for smaller projects, which require more personalized attention and project management. Smaller projects typically consist of services such as Kitchen and Bathroom remodeling, a garage redesign or a driveway installation.

    • Larger Projects: For larger-scale projects, the percentage might be lower (around 5%-10%) due to economies of scale, though the overall cost is higher.



General Contractor Pricing guide from homeguide.com


Average project cost

Additional price for GC

Cost to build a house

$178,000 - $416,000

$18,000 - $83,000

Home addition cost

$22,500 - $74,000

$2,200 - $15,000

Cost to remodel a house

$19,800 - $73,200

$2,000 - $15,000

Bathroom remodel cost

$5,500 - $15,000

$550 - $3,000

Small bathroom remodel cost

$2,500 - $10,000

$250 - $2,000

Bathroom addition cost

$18,000 - $47,000

$1,800 - $9,500

Kitchen remodeling prices

$12,800 - $21,200

$1,300 - $4,300

Cost to finish a basement

$22,000 - $46,000

$2,200 - $9,200

Cost to build a garage

$19,600 - $28,200

$1,900 - $5,700

Cost to build a sunroom

$15,000 - $80,000

$1,500 - $16,000

Cost to build a pole barn

$4,000 - $35,000

$400 - $7,000

Drywall installation cost

$8,000 - $30,000

$800 - $6,000

Cost to build a brick or stone wall

$3,000 - $9,000

$300 - $1,800

Deck building cost

$4,400 - $10,000

$440 - $2,000

Concrete patio cost

$1,200 - $4,300

$120 - $900

Driveway installation cost

$1,700 - $6,900

$170 - $1,400

Fence installation cost

$1,600 - $3,500

$160 - $700

Support beam installation cost

$1,200 - $4,200

$120 - $900

Cost to raise a house

$10,000 - $40,000

This fee generally covers the range of responsibilities like project management, coordinating subcontractors, ensuring adherence to safety codes, and handling budget and scheduling tasks.


The Scope of Construction Management Services

The construction management services scope of work that GCs provide is extensive. It involves detailed construction project planning, from initial design meetings to final inspections. The construction process step by step includes:


Construction layout for a Spanish-style guest bathroom featuring a design for the mosaic pattern on the wall, positioned on the left side of the document. The dimensions of the bathroom and plans for the placement of the bathroom components will be detailed on the right side of the document.
Construction layout for a Spanish-style guest bathroom featuring a design for the mosaic pattern on the wall, positioned on the left side of the document. The dimensions of the bathroom and plans for the placement of the bathroom components will be detailed on the right side of the document.

  1. Pre-Construction Planning: In this phase, GCs gather necessary permits, finalize contracts with the subcontractors involved in the project, and establish a clear construction layout.

  2. Execution: GCs oversee the physical construction, coordinating labor and materials while ensuring adherence to the project schedule.

  3. Monitoring and Adjusting: During construction, GCs continuously monitor progress against the construction project time schedule, making adjustments as needed.

  4. Final Walkthrough and Closeout: Once construction is complete, GCs conduct a final walkthrough to ensure everything meets quality standards before handing over the project.


Conclusion

General contractors are indispensable in the construction project process, navigating the complexities of project management while ensuring successful project outcomes. Their expertise in construction planning, cost management, and site supervision not only facilitates smooth project execution but also contributes to the overall success of construction projects. Understanding the breadth of their responsibilities and the financial implications of general contractor pay helps stakeholders appreciate the value they bring to the industry.


Whether you’re embarking on a new project or looking to understand the construction process better, recognizing the essential role of general contractors is a vital step towards achieving your construction goals.

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