What exactly are you paying for in a builder’s fee (OH&P) and general conditions?

Often, home builders and general contractors (as well as subcontractors) are questioned about “what is included in general conditions and contractors’ fees”, and perhaps, “why is it so expensive when I can just do the contracting myself?”  While this may seem like a valid question, there are many things included in these costs that are not so obvious to a homeowner.

What to expect in a general contractor or home builder’s fee (overhead and profit):

  • Contractors work for a profit…just as any other business. We offer free estimates in ALL cases, which cost us a lot of time, energy and money, and when we do not get a project, we do not collect a fee.
  • When we perform our services, we expect a payment for management of scheduling, assisting with material selections, maintaining ongoing daily communication with all parties (including subcontractors, architect, building officials (inspectors) and municipalities, and the client), managing and assuring the budget stays on track, as well as office and administrative costs.
  • A reputable general contractor will carry the proper insurance including general liability and worker’s compensation which is a hard cost and must be maintained to protect the client, ourselves and others working on the job. He will also ensure that all of the subcontractors on site are properly insured in both GL and WC, another form of protection to the client.
  • General conditions can include:
    • Salary for on-site supervision during your construction project.
    • Safety, barricades, protection, clean-up (including final cleaning), travel time, temporary toilets, dumpsters, temporary driveways, equipment rentals, jobsite trailers and storage containers, etc.

Many television shows have been deceitful to the public by touting ridiculously low and impossible costs of construction, as well as many that can be done DIY (and within days).  Please take a moment to ponder the thought, “if it looks to good to be true…it probably is”.

We love what we do here at Crown, and our goal is to make our clients happy and gain a referral for another project.  We are not in the business of ripping off our customers…we are here to do an important job that must be done right, or it may suffer terrible consequences in the future.  Some disastrous examples will be shared in our next blog article!

Amanda Regelin, Sr. Project Manager (Residential and Commercial Divisions)

Please feel free to contact us at info@crownbuilds.com or 219-488-2400 for more useful tips, and don’t forget to view our latest projects at http://crownconstructionin.houzz.com/ and


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