Why Subcontractor Markup Is a Normal—and Necessary—Part of Your Construction Project

If you’ve ever reviewed a construction estimate and noticed a markup on subcontractor work, you might wonder: “Why am I being charged more than what the subcontractor charges?” It’s a fair question—and one we get often as general contractors.

The short answer? Subcontractor markup is standard practice in the construction industry, and here’s why it’s not only normal, but essential.

What Is Subcontractor Markup?

Subcontractor markup refers to the percentage added to a subcontractor’s cost when it’s included in a general contractor’s estimate. This markup typically ranges from 10% to 30%, depending on the scope and complexity of the job.

It covers much more than just “profit.” It includes:

• Project management and coordination
• Scheduling and communication
• Risk and liability coverage
• Overhead (insurance, licensing, office support)
• Quality control and supervision

Why Markup Matters (And Helps You)

Hiring a subcontractor directly means you take on the responsibility of:

• Vetting their licenses and insurance
• Scheduling and coordinating timelines
• Managing performance and quality
• Handling payment terms, warranties, or disputes

When you work with a licensed general contractor, we take all that off your plate—and we assume the liability if something goes wrong. The markup helps us do that effectively and responsibly.

In other words, you’re not just paying for a subcontractor—you’re paying for:

✅ Peace of mind
✅ Professional oversight
✅ A single point of contact
✅ A smooth, on-schedule job
✅ A better finished result

Transparency Is Key

At [Your Company Name], we believe in full transparency. We’re upfront about what things cost, and we never markup without adding real value in the process. Our reputation depends on delivering quality work that’s done right, on time, and on budget.

Final Thoughts

Subcontractor markup isn't about nickel-and-diming you—it's about protecting your investment, ensuring high standards, and keeping your project on track. It’s a normal, necessary part of a professional, well-managed construction job.

Got questions about a project quote or want a second opinion? We’re happy to walk you through the numbers.

📞 Call us at [Your Phone Number]
💬 Or request a free consultation at [Your Website URL]

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