I'm currently remodeling my master bedroom, closet, and bathroom and signed a flat-rate contract with a general contractor (GC). While the GC initially provided the cost quotes from various subcontractors, they later opted for different subs who quoted lower prices for the same work. I know this because I was present during the quoting process. Shouldn't my general contractor pass those savings on to me? Or is it common practice for GCs to keep the difference as profit?
3 Answers
In general, your GC shouldn’t adjust the price unless the project scope changes. My approach is to provide a total upfront cost and manage any subcontracting as needed. This keeps things simple for clients. It’s much better than having a bunch of surprise charges later on. Only if unexpected issues arise, like the need to change materials, would I bring up potential changes in the final price.
No, typically the GC won’t pass those savings onto you. Once you sign that contract for a specific dollar amount, that’s what you’re locked into. They take a risk with that agreed price, meaning if they end up using a more expensive sub, they need to cover that cost themselves. It’s not always about shopping for the cheapest quotes, as sometimes the subs they quoted might be unavailable for the job.
From my experience, what really matters is the price you agreed upon in the contract. The subcontractors' charges don't change the deal. Most contractors prefer using subs they trust to do good work, rather than just going for the lowest price. It's about reliability and quality.