GC cost-plus sanity check
Building house in central Texas. Received preliminary building estimate for a cost-plus contract. Construction cost for the house, excluding overhead and builder fees, is approximately $1.6M. I own the lot.
The builder is asking for the following:
1. General Conditions (overhead) - fixed amount per month that works out to about 6.5% of the construction cost.
2. Builder's Fee (profit) of 14% of (construction cost + overhead).
3. Builder's risk insurance, liability insurance, workers comp - $14,000.
Do these seem reasonable? I like the builder and he has a good reputation. I am willing to pay a premium to use him. At the same time, I would like to get a sense of whether these numbers are market, a little above market, or considerably above market.