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

General contractors in Ottawa typically charge 15-25% markup on subcontractor costs, plus a separate project management fee of 10-15% of the total project value. This means you're looking at a total of 25-40% in GC fees on top of the actual trade costs.

Here's how it typically breaks down in the Ottawa market:

Markup Structure:
The 15-25% markup covers the GC's overhead costs - insurance, bonding, office expenses, and profit margin on coordinating trades. Smaller projects might see higher percentages (up to 30%) while larger renovations often get better rates around 15-20%.

Management Fees:
The separate 10-15% project management fee covers scheduling, quality control, permit coordination, and being your single point of contact. Some GCs roll this into their markup, others separate it clearly on estimates.

What This Means for Your Ottawa Project:
If your trades (electrical, plumbing, flooring, etc.) cost $40,000, expect to pay the GC an additional $10,000-16,000 in fees. On a $60,000 renovation, total GC fees typically range from $15,000-24,000.

Red Flags to Watch For:
Be wary of GCs charging both high markup (over 25%) AND high management fees (over 15%). Also watch for "cost-plus" contracts without caps - these can spiral quickly. Any GC unwilling to explain their fee structure clearly should raise concerns.

Getting Transparency in Ottawa:
When getting quotes, ask contractors to break down their fees separately from trade costs. Request they show their markup percentage and management fee clearly. The best Ottawa contractors are upfront about this structure because they know informed homeowners make better clients.

Verification Steps:
Before signing, verify your GC is properly licensed through the City of Ottawa Building Code Services (613-580-2424) and has current WSIB clearance. Check their Better Business Bureau rating and ask for recent client references in your Ottawa neighborhood.

Payment Protection:
Under Ontario's Construction Lien Act, hold back 10% of each payment until 60 days after project completion. This protects you if subcontractors aren't paid and file liens against your property.

The key is getting detailed, written estimates that clearly separate trade costs from GC fees, so you can compare apples-to-apples between different Ottawa contractors.