How much does a general contractor charge on top of subcontractors?

General contractors in Ottawa typically charge 15-25% markup on top of subcontractor costs, plus a separate project management fee of 10-15% of the total project value.

The markup structure varies depending on the project size and complexity. For larger renovations ($50,000+), you might see the lower end of this range, while smaller projects often carry higher percentages due to the fixed costs of project coordination.

How Ottawa GCs Structure Their Pricing

Most reputable general contractors in Ottawa use one of two pricing models:

Cost-Plus Model: You pay actual subcontractor costs plus the GC's markup and management fee. This provides transparency but requires trust and detailed tracking.

Fixed-Price Contract: The GC provides one total price that includes their markup and profit margin. This gives you cost certainty but less visibility into the actual subcontractor costs.

What You're Paying For

The markup covers more than just profit. Your general contractor handles permit applications with the City of Ottawa (613-580-2424), coordinates ESA electrical inspections, manages TSSA gas permits, ensures WSIB compliance for all trades, and maintains liability insurance coverage. They're also responsible for scheduling, quality control, and resolving any issues that arise.

Red Flags in GC Pricing

Be cautious of contractors who can't clearly explain their fee structure or who quote significantly below market rates. In Ottawa's current market, extremely low bids often indicate corners will be cut on permits, insurance, or quality trades. Always verify that your GC is properly insured and that all subcontractors have valid WSIB clearance certificates.

Getting Transparent Pricing

When interviewing general contractors, ask for a detailed breakdown showing subcontractor costs separately from management fees. Reputable Ottawa contractors should be willing to explain their pricing structure and provide references from recent projects. You can verify their credentials and any complaints through the Ontario Consumer Protection office.

The key is ensuring you're comparing apples to apples when evaluating quotes - make sure each contractor is including the same scope of work, permits, and level of project management in their proposals.