Your contract should specify a billing rate for the contractor and/or contractor's employees performing work on site. The "contractor's fee" should cover all general and administrative activities, e.g., purchasing, accounting, scheduling, general project coordination, on-site client meetings, progress reporting to the client, etc. If the contractor is performing hands-on work that would otherwise be performed by a trade contractor, I believe it's legitimate for him to charge you for that time.

Hoping to get some recommendations on a trustworthy and reliable contractor company that’s not asking for a leg and an arm to remodel a small kitchen. Orland park, IL area

Regardless of whether or not the contractor "deserves" more profit or is going to go out of business, this is probably not allowed. California has some specific requirements for remodeling contracts that help eliminate surprise charges. First, in contracts "cost" has a very specific meaning, it is the amount paid by the contractor after all discounts and rebates. So it is the actual amount of money (or trade value) that the contractor surrendered and not a penny more. Contracts don't have to use the word cost for there to be a legal inference of cost. In California time and materials contracts are prohibited in remodeling projects. This essentially leaves only fixed cost and cost plus contracts available. In most states, including California, a fixed price contract must include the material selections necessary to complete the project. If you then choose to upgrade to a different material then the contractor will initiate a change order for the upgrade and can largely charge whatever you and the contractor agree to before the work starts. A change order, once agreed to, essentially becomes a fixed price addendum to the fixed price contract. However, if some type of allowance is used for materials then that portion of the contract becomes a cost plus. In a cost plus contract, the contractor must charge his actual cost for materials plus the disclosed overhead and profit (often called builder's percentage). So if your contract states 10% for overhead and 10% for profit then the contractor is only allowed to charge his actual cost plus 20%. California has additional requirements to prevent contractors from marking up the job after the contract is signed that are a bit more restrictive than the standard cost plus mechanism described above. My guess, without actually reading the contract, is that since you know the builder's percentage this is not a fixed price contract and the contractor is not allowed to mark up your selection an additional 24%. Again, this is just a guess inferred from the information provided and is not something you should rely on to take action. If you decide to take action start by reading the applicable statutes or finding some resources from the CSLB. As for the going out of business thing... that's not your problem. If your contractor needs to break the law to stay in business then maybe he should consider a different business.

Banker and Money first. Where is that coming from? How much is available? What are the priorities for it being spent? Do you care if you are "over improving" for the neighborhood? If this is an upscale 160K+ renovation, you need to know how much ++ you are realistically comfortable spending. You can spend all kinds of crazy money blowing out walls and adding additions, but there are very few markets where that type of expense will be returned to you at resale. Figure out your line in the sand as far as the cost you are willing to spend on that house, before you throw up your hands and say "we will just move." https://www.remodeling.hw.net/cost-vs-value/major-kitchen-remodel-upscale?y=2023 Once you have a budget figure in mind, then work with a good KD for a "concept design" to show to your GC. You do not need to know that you will have a 4 equal size drawer base next to your range, and have genuine Mexican saltillo tile on the floors. You just need a rough draft of the major changes to the layout being made, and a 1-10 idea of the level of quality and expense to be spent. People always underestimate the costs for the level, BTW. National average middle of the road kitchens are 80K these day. That's a Level 5, average, right in the middle. An upscale kitchen, blowing out that 20' wall for a La Cantina slide and stack door to the patio, and putting in a 48" range that needs a gas line and vent pipe, and HVAC upgrade are going to put you in a 7-10. Depends on everything else. Take that concept to the GC for a ballpark. Ask what are the major costs driving that ballpark, so that if it's already over your budget figure, you can see if you eliminate that 20' La Cantina door, you can meet budget. Or, the whole thing may be way over your budget. But, you will only be out a couple of thousand for design work, instead of thousands and thousands. Expect the ballpark to rise, as the design is revised to include more details. At least 30%. So, you want that initial to be at least 40% under your max. Once the GC gives you the rough ballpark, that is when you can work on the 4 drawer base next to the range, and the merits of a wood hood vs stainless. Those are the decisions that make the cost rise, so this is where YOU get to control costs, via your want list, vs what you actually need. If you cannot reign in your wants, expect to go more than 40% above your initial ballpark price given by the GC. "While we are at it" change orders will sink a budget.