Cost Savings

We provide personalized, luxurious, and seamless travek experiences

Specific Cost Savings by Avoiding General Contractor Markups

Wondering if it’s worth it? We’ve compiled a list of fees and markups that are commonly found when using General Contractors, along with approximate savings by using the DHR approach:
  • Respectful, Professional, and Family-Friendly Service
  • Access to our network of vetted subcontractors
  • Exclusive supplier discounts
  • General approach and high-level project schedule
  • High-level cost and timing estimates
  • Post-Kickoff Support: None. This package is designed for fully independent homeowners ready to run their project from start to finish

  • Estimated Savings: 10-20 hours (10%-15% compared to GC)
    • Clients avoid researching subcontractors and suppliers. Instead, they receive access to our pre-vetted subcontractors and material suppliers, with a basic roadmap to follow. With just the basic guidance, clients bypass GC overhead fees and initial markup on subcontractors but handle most coordination themselves.
  • Project Management Fee: GCs typically charge a 10-20% fee on total project costs. Savings: $5,000 on a $50,000 project.
  • Markup on Subcontractors: GCs may add a 10-25% markup on subcontractor services. Example: A $10,000 electrical job could cost $12,500. Savings: $2,500.
  • Markup on Materials: Materials like lumber or paint are often marked up by 15-30%. Example: $20,000 in materials could cost $25,000 with a GC. Savings: $5,000.
  • Site Supervision Fee: GCs may charge a daily or weekly rate for site visits. Example: $500/week for a 10-week project. Savings: $5,000.
  • Permit Handling Fees: Some GCs add extra charges for handling permits, which clients could do directly for only the base fee. Savings: $500.
  • Architectural and Design Fees: GCs can upcharge these services by 15-25%. Example: An architect’s fee of $5,000 could be marked up to $6,000. Savings: $1,000.
  • Project Scheduling: GCs often charge for creating a timeline. Savings: $300-$500.
  • Labor Overheads: General labor can be marked up by 15-20% for the GC’s admin costs. Example: $8,000 labor cost increased to $9,600. Savings: $1,600.
  • Demo and Cleanup Fees: GCs may charge high fees for demolition and waste disposal. Example: $2,000 instead of a direct $1,500. Savings: $500.
  • Coordination of Inspections: GCs often bill separately for organizing inspections. Savings: $500.
  • Additional Insurance Fees: Some GCs may add insurance surcharges. Savings: $300.
  • Project Documentation and Reporting: GCs can charge for project status reports and documentation. Savings: $200.
  • Incident Resolution Charges: Many GCs charge extra for unforeseen issue handling. Savings: $1,000 on a $10,000 contingency budget.
  • Travel and Site Access Fees: GCs may bill for travel to/from the site. Savings: $300.
  • Material Storage Fees: GCs may charge for storing project materials. Savings: $500.