What should a contractor's reasonable profit percentage be?

Answer by  DavidS (1517)

Depending on the scope of the work. On average the percentage will be around 20% that does not take into account the number of employees and the hours worked that is just a base average.

Answer by  snceflyf (448)

What is considered reasonable varies greatly depending on your location, but contractors should make 25-40% of the total cost of the job. If you bid hourly, then you should add a percentage to the cost of the materials.

Answer by  MrHardware (369)

Depends on how specialized the work the contractor is performing. Many general contractors aim for 30-50% net profit after labor and materials. A highly skilled specialized contractor can easily expect 100% net. Keep in mind the contractor has many expenses including licenses, insurance, equipment, and equipment maintenance.