SHOP PRODUCTS
Houzz Logo Print
balazs1981

Fixed-price contract has Contractor's Fee % as well?

balazs1981
6 years ago

Contractor says there is a lot of "unknowns" in the project. When asked what happens if some parts of the work come it at a lower cost, he said that would be his profit and if it's higher, it would be his risk.


However, there is still a % at the estimate I received labeled "Contractor's Fee".


This is my first major remodel project with a GC, so I don't know what is standard. Is it normal to have a % markup on as part of the fixed price contract?


Or is this some kind of trick because I don't know how it works?


There are in fact a lot of unknowns with the project, I just don't understand that is the items are padded already, why is there a % as well.


Is this common?

Comments (42)