In 2025, general contractors charge per hour between $50 and $150 . The exact rate depends on several factors, such as the size and complexity of the project, as well as the location. Larger or more complicated projects, such as home additions or full renovations, tend to cost more.
Contractors in urban or high-demand areas may also charge higher rates due to increased competition and living costs. It’s important to get multiple quotes and consider these factors when budgeting for your home improvement project.
Average general contractor cost
People must understand typical costs when hiring contractors for construction and renovation tasks. The average general contractor fees depends on project format, along with two primary fee methods that follow this structure:
| Charge type | Average cost |
| Percentage markup of construction cost | 10%–20% |
| Hourly rate | $50-$150 per hour |
| Daily rate | $300-$500 per day |
General Contractor Cost by State
The cost of hiring general contractors depends on the state where one resides. Contractors in California and New York typically charge higher prices than in Alabama and Arkansas because of the different living conditions in each region. The following table shows typical hourly fees paid to general contractors throughout American states.
| State | Cost | General Statewide Average Hourly Cost |
| California | $75 – $150 | $40.89 (private sector) |
| New York | $65 – $140 | $38.65 (private sector) |
| Texas | $55 – $120 | $34.15 (private sector) |
| Florida | $60 – $130 | $34.00 (private sector) |
| Illinois | $55 – $110 | $34.78 (private sector) |
| Georgia | $50 – $105 | $34.11 (private sector) |
| Arizona | $50 – $110 | $34.37 (private sector) |
| Michigan | $50 – $105 | $33.30 (private sector) |
Why Do Rates Vary by State?
Rates differ due to several factors:
- Cost of living: States with a higher cost of living, such as California, therefore result in increased contractor charges.
- Demand: High-demand areas or populated urban centers can also have higher prices due to increased competition for services.
- Local laws: Certain areas have stricter building codes and permit regulations, which can drive up the expense for contractors and the homeowner.
Factors That Influence General Contractor Rates
The fee for a general contractor can differ depending on numerous variables:
- Project Type: More complex and larger projects, such as adding a new home or home additions, will incur higher contractor costs. Less expensive projects, such as installing drywall or minor repairs, will cost less per hour.
- Location: General contractor prices may fluctuate based on the state or region. Contractors who work in urban or high-cost of living regions tend to charge higher prices than those who work in rural or low-cost areas.
- Experience: More experienced and well-established contractors charge more for their services because of the quality of their expertise and pool of subcontractors.
- Project Size and Scope: A basic kitchen renovation will be less expensive than a complete house renovation or building a new house. More labor and materials are needed for bigger projects, affecting prices.
- Time of Year: Contractors sometimes charge more for their services during peak construction periods, including spring and summer, when there is high demand.
General Contractor cost Structures
1. Percentage of Construction Costs
General construction companies bill clients with fees between 10% and 20% of the entire project spending. The project cost components determine how much the general contractor fees will be until construction is completed. Home construction generates higher fee percentage payments since projects with large construction costs exist.
2. Fixed Price / Lump Sum
Contractors establish set prices for complete projects by computing costs for labor and materials alongside other expense calculations. Specific remodeling tasks typically adopt this approach, particularly when dealing with defined bathroom or kitchen reconstruction jobs.
3. Cost-Plus Agreement
The Cost-Plus agreement allows the homeowner to pay for all labor and materials costs, followed by adding a contractor-deemed percentage markup. The present deal will enable contractors to profit more than homeowners because they get the financial motivation to expand the total project value.
4. Time and Materials (T&M)
During T&M contracting, the hired firm collects payment through hourly worker rates and materials expenses. The potential expenses for the homeowner increase because they struggle to determine the full project costs before beginning work through this arrangement.
5. Hourly or Daily Rate
The cost for contractors consists of hourly or daily payments that apply to small tasks or early planning steps. The cost per hour for a contractor ranges between $50 to $150, alongside daily rates between $300 to $500. Workers who come under subcontractors and laborers cost clients between $150 to $250 for each work day.
General Contractor Costs by Project Type
Although contractors are usually paid hourly, most general contractors also provide a fixed price for a project. Some of the types of work with estimated costs in 2025 are as follows:
| Project | Average Project Cost | Additional Cost for General Contractor (GC) |
| Cost to build a house | $178,000 – $416,000 | $18,000 – $83,000 |
| Home addition cost | $22,500 – $74,000 | $2,200 – $15,000 |
| Cost to remodel a house | $19,800 – $73,200 | $2,000 – $15,000 |
| Bathroom remodel cost | $5,500 – $15,000 | $550 – $3,000 |
| Kitchen remodeling prices | $12,800 – $21,200 | $1,300 – $4,300 |
| Drywall installation cost | $8,000 – $30,000 | $800 – $6,000 |
| Deck building cost | $4,400 – $10,000 | $440 – $2,000 |
1. Building a New Home
- Average Cost: $282,000
- General Contractor Fee: $28,000–$56,000 (10%-20% of project cost)
Constructing your own house represents among the most costly building projects available. General contractors’ prices from construction costs typically fall between 10% to 20% of the entire expenditure. Property owners building a $300,000 home require contractor payments between $30,000 and $60,000.
2. Home Addition
- Average Cost: $46,750
- General Contractor Fee: $4,700–$9,400
Home expansions with contractor fees typically cost 10% to 20% of the complete construction budget. The contractor adds $5,000 to $10,000 to all $50,000 home addition projects.
3. Bathroom Remodel
- Average Cost: $5,500 – $15,000
- Additional GC Fee: $550-$3,000
Residential bathroom renovation projects represent one of the typical tasks homeowners initiate on their properties. The fee paid to a general contractor typically falls between $550 and $3,000 based on project complexity.
4. Kitchen Remodel
- Average Cost: $25,850
- General Contractor Fee: $2,600–$5,200
Many homeowners renovate their kitchens because it is a popular home improvement initiative. The overall remodeling price depends on project dimensions, while the general contractor fee ranges between $2,600 to $5,200.
5. Deck Building
- Average Cost: $11,150
- General Contractor Fee: $1,100–$2,200
Property owners frequently construct decks because it represents a popular residential upgrade. The contractor fees for deck construction vary from $440 to $2,000 based on material selection and overall deck dimensions.
6. Installing Drywall
- Average Cost: $1,880
- General Contractor Fee: $185–$370
Professional installation of drywall walls represents an entry-level home improvement task that reduces costs compared to other extensive construction projects—the contractor fees typically range between $185 and $370.
Conclusion
The labor rates of general contractors in 2025 span from $50 up to $150 based on project dimensions, geographical location, and difficulty level. The fee calculation process for contractors working on home construction or remodeling projects involves taking between 10% and 20% of the overall construction expense. The essential project budgeting process depends heavily on grasping the main cost structures between hourly rates, daily rates, and percentage-based pricing systems. Hiring contractors requires obtaining several quotes and precisely specifying working terms to avoid additional expenses.
FAQS
Q1. What should a general contractor charge per hour?
A general contractor usually charges between $50 and $150 an hour based on the complexity of the project, location, and experience of the contractor.
Q2. Which state do general contractors earn the most in?
General contractors earn the most in California, with rates between $75 and $150 an hour, because of the high cost of living in the state and the demand for construction services.
Q3. What is the average hourly rate of a contractor in the US?
The national average hourly wage of a general contractor in the U.S. can vary between $50 to $150 an hour, varying based on geographical area, project scope, and the contractor’s experience.
Q4. How much markup would a general contractor typically take?
A general contractor’s typical markup can vary from 10% to 20% of the overall cost of construction based on the complexity of the project as well as the size.
