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House renovation cost plus contract

David
3 months ago

I'm currently getting quotes to gut renovate a master bath, lightly renovate a guest bath, open up a wall between my kitchen and dining rooms, refinish all of my original 1938 wood floors, and have sidelight windows installed on either side of my front door. The preferred contractor charges cost + 22%, which didn't seem too bad for the area I'm in. However, in addition to cost plus which is tacked onto the subtrades and materials, the contract has separate large line items for Site Management ($95/hr for an estimated $12,350) and General Requirements (which include cleaning, debris removal, insurance, G/L, W/C, temp facilities, site toilet, utilities, and permits for a total of $7000).
My question is: in a typical cost plus renovation contract, is it standard to have these substantial items be separate, or are they typically included in the cost plus mark-up? I have no experience with this sort of thing, so any advice is greatly appreciated. When you tack on the general requirements and site management fee, the effective rate they're charging to do the project pushes closer to an eye watering 40%.

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