I would like to get other opinions regarding General Contractor Fees and General Condition Costing for the completion of a problem project.
I'm working on an estimate for an apartment project rehab that failed with the original owner/builder. The new contractor that the court appointed receiver shows almost 30% of the $3.2MM contract as General Contractor Fees, General Conditions and Insurance.
I could see up to 15% for a typical new construction or rehab project, but the 30% at first brush seems excessive. After further thinking about it, the new contractor (in California) will likely take on some of the responsibilities and liabilities for the work completed by the failed original contractor. In addition, the contractor has to put more time into the preconstruction reviews to meet with the city to determine an actual scope of work, meet with the receiver, and has actually reviewed all of the 150 units to put together a scope of work.
Does anyone else have opinions on the subject? I'm sure that this will be an issue that comes up again and again over the next two years as the failing projects are taken over by the banks and/or courts.
Thanks
Dave