---
title: "General Contractor Fees: How Remodels Are Priced"
url: https://remodelbycuttingedge.com/general-contractor-fees/
date: 2026-10-11
modified: 2026-10-11
lang: en
author: "Blane Perun"
description: "How general contractors price remodels: typical 10 to 20 percent fees, markup vs margin, fixed price vs cost-plus, and Florida licensing and lien law."
image: https://remodelbycuttingedge.com/wp-content/uploads/2026/07/General-Contractor-from-Cutting-Edge-Bonita-Springs-4-1024x572.webp
word_count: 876
---

# General Contractor Fees: How Remodels Are Priced

![General Contractor Fees How Remodels Are Priced by Cutting Edge Kitchen & Bath](https://remodelbycuttingedge.com/wp-content/uploads/2026/07/General-Contractor-from-Cutting-Edge-Bonita-Springs-4-scaled.webp)General Contractor · Bonita Springs & Naples
# General Contractor FeesHow Remodels Are Priced
Projects From$25.5KBased on our General Contractor packagesDesign VisitFreeLiDAR scan and photo-real 3D renderBuilt ByOur CrewsLicensed Florida GC, 500+ SWFL remodels
By **Blane Perun**, Owner · Cutting Edge Kitchen & Bath·20 years property management · 500+ SWFL remodels · Updated October 2026

The short answer
General contractors are paid through a markup for overhead and profit added to the cost of labor, materials and subcontractors. HomeAdvisor reports that general contractors most often charge 10 to 20 percent of the total project cost. That fee covers supervision, licensing, insurance, permits, scheduling, warranty and the business itself. How it shows up depends on the contract type: a fixed-price contract builds it into one number, while cost-plus shows the markup separately on top of actual costs.

[Part of our General Contractor guide →](/general-contractor-bonita/)

![Licensed general contractor reviewing remodel plans in Bonita Springs](https://remodelbycuttingedge.com/wp-content/uploads/2026/07/General-Contractor-from-Cutting-Edge-Bonita-Springs-1-scaled.webp)General Contractor · Cutting Edge Kitchen & Bath

## How Do General Contractors Price a Remodel?
Every estimate starts with direct costs: materials, the contractor's own labor, and subcontractors such as plumbers, electricians and tile setters. Overhead is added next, covering the license, liability and workers' compensation insurance, vehicles, office staff, project management and the time spent on permits and inspections. Profit comes last. Markup and margin are not the same thing: a 20 percent markup on costs produces about a 16.7 percent margin on the final price, which is worth knowing when comparing bids.

Contract type changes who carries the risk. A fixed-price contract sets one price for a defined scope, so the contractor absorbs most cost overruns and you know your number before work starts. Cost-plus passes actual costs through with a fee added, which is flexible but leaves the final number open. Time and materials bills labor by the hour plus materials. Change orders, allowances for items not yet chosen, and how the contract handles unknown conditions behind walls all affect what you finally pay. Reading those clauses before signing matters as much as comparing the bottom line on two bids.

| Contract type | How you pay | Who carries cost risk | Best for |
| ------------- | ----------- | --------------------- | -------- |
| Fixed price | One price for a defined scope | Mostly the contractor | Clear designs where you want a firm budget |
| Cost-plus percentage | Actual costs plus a percentage fee | Mostly the owner | Projects with an evolving scope |
| Cost-plus fixed fee | Actual costs plus a set fee | Shared | Large custom work with transparency |
| Time and materials | Hourly labor plus materials | The owner | Small repairs and uncertain scopes |

Hire a *Licensed GC.*
See our general contractor services, with permits, trades and code compliance managed under one fixed-price contract.

[See GC Services →](/general-contractor-bonita/)[Set an Appointment](/contact/)

## What Changes in Southwest Florida?
Licensing is the first check. Florida requires a state-certified or registered contractor for structural work and most permitted remodeling, and you can verify any license through the Florida Department of Business and Professional Regulation. Permits in Lee County, the City of Bonita Springs, Collier County and the City of Naples are pulled by the licensed contractor, which is part of what the fee pays for. Condo associations also require proof of license and insurance before approving work.

Florida's Construction Lien Law gives subcontractors and suppliers the right to lien your property if they are not paid, even when you have paid the general contractor. Ask for lien releases with each payment and a final release at the end. Local conditions also affect pricing: wind-code requirements, flood-zone rules including the FEMA 50 percent rule, and demand that peaks after storms. Our fixed-price packages, starting from $25,500, include the contractor fee in the price, so there is no separate markup line to track and no surprise invoice at the end of the job.

![Whole home remodel under construction in a Southwest Florida home](https://remodelbycuttingedge.com/wp-content/uploads/2026/07/General-Contractor-from-Cutting-Edge-Bonita-Springs-2-scaled.webp)General Contractor · Cutting Edge Kitchen & Bath

## General Contractor Fee Questions

### What is a typical general contractor markup?
HomeAdvisor reports general contractors most often charge 10 to 20 percent of total project cost. The right number depends on project size, complexity and how much management the contractor provides. A lower fee is not a better deal if supervision, insurance or warranty are missing.

### Is fixed price or cost-plus better for a remodel?
Fixed price gives you a firm number and puts most overrun risk on the contractor, which suits a clearly designed project. Cost-plus offers flexibility when the scope is still changing but leaves the final cost open. A detailed design before contract makes fixed price work well.

### Why are some contractor bids so much lower?
Low bids often leave out items like permits, cleanup, allowances that match your finishes, or proper insurance. Others rely on change orders after work starts. Compare bids line by line for the same scope, and check each contractor's license and insurance before deciding.

Get One *Fixed Price.*
We scan your home, render the design and give you a single fixed price with our fee included.

[Request Your Fixed Price →](/general-contractor-bonita/)[Set an Appointment](/contact/)

## Why Clients Trust Our Pricing
Pricing is easiest to trust when you see the finished design and one number before work begins. Cutting Edge Kitchen & Bath is a licensed Florida general contractor in Bonita Springs with more than 500 Southwest Florida remodels and nine Best of Houzz awards. Every project starts with a free LiDAR scan and photo-real 3D render, then a single fixed-price contract that includes our fee, permits and the work of our own crews. Visit our 4,000-square-foot showroom at 28280 Old 41 Road to see materials and talk through the numbers in person.