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At Legacy construction we try to be as transparent as possible.
Our cost are normally Time and Material plus 20% (lower than the national average of 25-35%)
Some portions of the job are quoted by the project, these jobs are normally jobs that we know what all cost aspects are going to be, such as siding, spray foam insulation roofing etc.
Overhead: Office/admin costs, estimating/bidding time, marketing to win jobs, insurance (liability, workers’ comp, vehicle, etc.), tools/equipment, vehicles, fuel, licenses/permits, accounting/legal, and general business operations. Remodeling contractors often run 25–54% overhead as a percentage of revenue because jobs are smaller, more numerous, and more management-intensive.
Time: At Legacy Construction, we prioritize transparency and value in every aspect of your project. Our standard 20% material handling markup covers the essential, hands-on procurement services performed by a dedicated team member—often the General Contractor or a specialized material runner—who actively manages material acquisition throughout each workday.
This proactive approach replaces reliance on standard store or supplier deliveries. Instead of waiting for materials to arrive, our team member spends a significant portion of the day (commonly 4–6 hours) traveling between suppliers to source, verify, select, and transport the precise materials needed to keep work progressing without interruption.
Project management & supervision: Coordinating subs, scheduling, site visits, client communication, change orders, and quality control.
Risk & contingency buffer: Remodels are full of unknowns (old wiring/plumbing, hidden structural issues, asbestos, permitting surprises, client-driven scope changes). The buffer helps absorb these without losing money.
Profit (net): What’s left after all expenses. Industry averages for net profit are often 5–10% (sometimes lower; top performers reach ~10–12%). Many remodelers see gross margins around 25–35%+ but net margins in the 6% range after heavy overhead.
Store or supplier deliveries often come with hidden costs and risks that can significantly impact your project:
New construction can sometimes run on thinner percentages because jobs are larger, more standardized, and overhead spreads across bigger revenue.
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