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hbusch66

I just received a preliminary budget for a new construction project I have been working on. I was surprised to see line items showing charges for Workers Comp., Insurance, and contractor's overhead (clerical, office maintenance costs). Is this a standard practice? What percentage of the project costs are commonly relegated to the general contractor?

   
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nBaxter Design + Real Estate

Yes. This is standard, because they do need all of those things for your project. Typically workers comp covers everyone working on the site, whether they are subcontractors or employees of the contractor, per state law. Administrative work covers the people in the office that are keeping track of all of the documents, change orders, specifications, finances, invoices, schedules, etc. Contractors outline these items because everything about a project is transparent. This is not to be confused with the contractors fee for services, which can or cannot be listed as a separate item. This often covers the contractor's services as well as any superintendent that runs your project. Percentages are up to the contractor.

   
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