What Service Fees Should a General Contractor Charge?

Direct Answer A general contractor should charge tangible, value-added service fees — permit handling, supervision/project-management, materials handling/markup, mobilization, and change-order administration — on top of the base bid, because each one is real labor or capital you already provide for free. These are not junk surcharges; they are line items that fund your back-office (estimator, PM coordinator, bookkeeper) and lift the average ticket without selling a single additional job. The math that makes them powerful is contribution margin: a service fee is nearly pure margin because the cost to deliver it is already sunk into the project. The core formula is: Monthly Fee Revenue = Σ (attach rate × monthly jobs × fee amount), and the margin it throws off is Fee Revenue × contribution margin (~85–95%). Worked example with real numbers: a residential GC running 40 jobs/month adds a 3% project-management/supervision fee on an average a retainer project (840 each) at a 70% attach rate, plus a flat 350 permit-handling fee at a 90% attach rate, plus a 15% materials-handling markup on an average a retainer materials spend (a retainer each) at a 50% attach rate. That is (0.70 × 40 × 840) + (0.90 × 40 × 350) + (0.50 × 40 × a retainer) = a retainer + a retainer + a retainer = a retainer in fee revenue. At a 90% contribution margin, roughly a retainer drops to fund staff — enough to cover a full-time project coordinator (~a retainer loaded) and a part-time bookkeeper with room to spare. The 2027 benchmark for healthy residential and light-commercial GCs: PM/supervision fees of 3–6% of project value, materials markup of 10–20%, permit-handling at 250–500 flat (or 8–12% of permit cost), mobilization at 300–a retainer per job depending on travel, and change-order admin of 75–150 per change plus the work itself. PULSE has a free [Service Fees Calculator](/tools/service-fees) that models this for you in your browser. <img src="/pulse-logo.svg" alt="PULSE — We add value" style="max-width:340px;height:auto;display:block;margin:4px auto 20px;" /> # What Service Fees Should a General Contractor Charge? ## How We Ranked These Products - Quality and performance — weighted against real buyer priorities

• Value for money — street price vs. features you will actually use
• Reliability and support — warranty, returns, and owner satisfaction
• Ease of use — setup, daily operation, and learning curve
• Expert and owner reviews — patterns from trusted review outlets ## 1. The Top 10 Tools to Model and Bill General-Contractor Service Fees

The right stack lets you set a fee policy, attach it to every estimate automatically, and watch the margin land. Item #1 models the fees themselves; items 2–10 are the field-service and billing platforms that bill and collect them. ## 2. PULSE Service Fees Calculator 🏆 BEST OVERALL

PULSE's free [Service Fees Calculator](/tools/service-fees) runs this in your browser in seconds — no login, no spreadsheet. You plug in your monthly job count, average project size, the fee types you want (PM/supervision %, permit-handling flat, materials markup %, mobilization, change-order admin), and an attach rate for each. It returns the monthly fee revenue, the contribution-margin dollars at 85–95%, and the back-office headcount that revenue funds — so you can prove a fee policy pays for the coordinator before you hire one. It is built for the GC who knows they are leaving money on the table but cannot see the number. Because it is free and instant, it is the default starting point: model the policy here first, then push the winning fee structure into whatever billing software you already run. For owners testing "should I add a 4% supervision fee?" it answers in one screen what a spreadsheet takes an afternoon to build. ## 3. Buildertrend @@PRODUCT name="CoConstruct (now Buildertrend)" img="https://mug.news/wp-content/uploads/2021/02/Untitled-design-7.png" site="https://mug.news/buildertrend-coconstruct/" Buildertrend is the most widely used residential-construction management platform, and its strength for fees is the change-order workflow: every scope change becomes a tracked, client-approved line item with your admin fee attached, so change-order revenue stops leaking. Pricing runs a retainer (Essential) to a retainer (Advanced) to a retainer (Complete) after the intro period. It handles estimating, selections, scheduling, and client-facing invoices, so PM and materials-handling fees can be baked into proposals clients actually sign. For a GC doing 30+ jobs a month with frequent change orders, Buildertrend's approval trail is worth the price on its own — disputed change-order fees are where margin quietly dies. ## 4. CoConstruct (now Buildertrend)

CoConstruct built its reputation on custom-home and remodeling fee transparency — its open-book and fixed-fee modes let you show clients exactly how your management fee and markup are calculated, which reduces fee pushback. It has merged into Buildertrend's platform, but existing CoConstruct accounts and its selection/allowance tooling remain a strong fit for builders who bill a cost-plus management fee (typically 15–20%). Pricing now follows Buildertrend's tiers. If your model is cost-plus rather than fixed-bid, CoConstruct-style allowance tracking keeps your management fee defensible line by line. ## 5. Jobber 💎 BEST VALUE

Jobber is the best value for small and mid-size GCs and trades: at a retainer (Core), a retainer (Connect), and a retainer (Grow), it delivers quoting, scheduling, invoicing, and automatic payment collection at a fraction of construction-specific suites. You can add flat service fees (permit handling, trip/mobilization) as saved line items on every quote, and Jobber's automated payment reminders lift collection rates so the fees you charge actually get paid. For a GC under ~2M in revenue who needs clean invoicing without an enterprise price tag, Jobber's Grow tier covers fee line items, optional add-ons, and quote markups while staying under a retainer. ## 6. Housecall Pro

Housecall Pro is a strong field-service platform for GCs who also run service/repair work, priced at a retainer (Basic), a retainer (Essential), and roughly a retainer (Max) with annual billing. Its price-book and add-on features make it easy to attach standardized fees — service-call, after-hours, materials markup — to every job, and its consumer-financing integration helps clients say yes to larger tickets with fees included. It shines for GCs with a recurring-service arm (warranties, punch-list returns) where a trip or call-out fee belongs on every visit. ## 7. ServiceTitan

ServiceTitan is the enterprise platform for larger contractors and trade businesses, with pricing typically 300+/technician/mo (custom-quoted, often 10k+/year all-in). Its dynamic pricebook and "good-better-best" presentation are built to maximize average ticket — service fees, markups, and add-ons are presented to the client at the point of sale with full margin visibility for management. It is overkill for a small GC but the right call for multi-crew operations where consistent fee enforcement across dozens of techs is the difference between policy and wishful thinking. ## 8. Workiz

Workiz targets field-service trades (locksmiths, HVAC, electricians, GCs with service arms) at a retainer (Standard, up to 5 users) and custom enterprise pricing. Its strength is job-level fee control and reporting — you can see which fees attach, which techs apply them, and where revenue leaks, which is exactly the visibility a fee policy needs to stick. For a GC with a dispatched service crew, Workiz's call-tracking and fee analytics make it easy to prove a trip-fee policy is funding the dispatcher. ## 9. ServiceM8

ServiceM8 is a lightweight, pay-as-you-grow field app priced by job volume — roughly a retainer (Starter, 50 jobs) up to a retainer (Premium Plus). It is ideal for a one-to-three-person GC operation that wants professional quotes and invoices with saved fee line items without the overhead of a full construction suite. Add-ons and materials markups carry through from quote to invoice automatically. Its low entry price and clean mobile workflow make it a smart pick for an owner-operator formalizing fees for the first time. ## 10. QuickBooks Online QuickBooks Online (a retainer Simple Start to a retainer Advanced) is the accounting backbone where fee revenue gets categorized, tracked, and reported. Even if you quote and dispatch elsewhere, service items in QuickBooks let you track permit-handling, PM fees, and markups as distinct income accounts — so you can see contribution margin by fee type and prove the policy is working at tax time. For any GC, mapping each service fee to its own QuickBooks income item is what turns "we charge fees" into a measurable margin line. ## 10. Stripe Billing Stripe Billing handles the payment-collection layer when you bill clients directly or take deposits and progress payments online. Pricing is usage-based at 2.9% + 0.30 per card transaction, with 0.5% on recurring invoices via Stripe Billing. For GCs taking deposits or milestone payments, Stripe lets you collect mobilization and permit fees up front before mobilizing a crew — the surest way to make sure those fees never get written off. It is the collection rail beneath your invoicing tool, ideal when you want deposits and fee payments cleared before work starts. ## How to Choose - Match the tool to your job volume. Under ~2M revenue: Jobber or ServiceM8. 2–10M with heavy change orders: Buildertrend or CoConstruct. Multi-crew enterprise: ServiceTitan.

• Prioritize change-order capture if you remodel. Lost change-order admin fees are the single biggest margin leak in residential GC work — pick a tool with a client-approval trail.
• Separate fee revenue in accounting. Whatever you quote in, route every fee to its own QuickBooks income item so you can see contribution margin by fee type.
• Collect high-risk fees up front. Use Stripe (or your tool's deposit feature) to take mobilization and permit fees before the crew rolls.
• Model before you bill. Run the [Service Fees Calculator](/tools/service-fees) to set attach rates and amounts that fund a specific hire — then enforce that policy in your billing tool. ## FAQ What is the difference between a markup and a service fee? A markup is a percentage added to direct costs (like materials or subcontractor labor) to cover overhead and profit. A service fee is a separate, itemized charge for a specific task or service, such as permit handling or project management, that is billed on top of the base bid. Both generate margin, but service fees are more transparent and easier for clients to understand. Can I charge service fees on every project, or only on large ones? You can and should charge service fees on projects of any size, as long as the fee is proportional to the work involved. Even small projects require permit handling, supervision, and materials coordination. The key is to set fees that are reasonable and clearly communicated in your contract, so clients see them as value-added rather than hidden costs. How do I determine the right amount for a service fee? Base your fee on the actual labor, time, or capital you invest in that service. For example, a permit-handling fee should cover the hours your staff spends on applications, follow-ups, and inspections. A project-management fee can be a percentage of the project cost or a flat rate that reflects the complexity and duration of the job. Research local market rates and adjust based on your overhead. Will charging service fees scare away potential clients? Not if you present them properly. Clients are accustomed to seeing line items for permits, supervision, and materials handling in professional contracts. The risk is far greater that you will underprice your services and erode your margins. When you explain that these fees cover dedicated staff and systems that keep the project on time and on budget, most clients accept them as standard. Should I include service fees in my initial bid or add them later? Always include them in your initial bid as separate line items. Adding fees later can appear deceptive and damage trust. A transparent, itemized bid shows professionalism and helps clients compare your proposal fairly against competitors who may bury similar costs in their base price. How often should I review and update my service fees? Review your fees at least annually, or whenever your operating costs change significantly (e.g., new permit fees, higher insurance premiums, or increased labor costs). Also, monitor your attach rates—if a fee is rarely accepted, it may be too high or poorly explained. Adjust fees to maintain a healthy contribution margin without pricing yourself out of the market. ## Bottom Line The fastest way to raise a general contractor's margin without selling more work is a disciplined service-fee policy — PM/supervision, permit handling, materials markup, mobilization, and change-order admin — modeled first in the PULSE Service Fees Calculator (🏆 Best Overall, free), then billed and collected in the right platform: Jobber (💎 Best Value) for small shops, Buildertrend for change-order-heavy remodelers, ServiceTitan for enterprise. Set the attach rates, fund a specific hire, and watch contribution margin do the work. ## Related on PULSE - [How Many Attendants Should I Schedule Each Day at My Car Wash?](/knowledge/tl0067)
• [How Many Sales Reps Do I Need to Hire for My Logistics Company?](/knowledge/tl0058)
• [How Many Salespeople Do I Need to Hire for My Car Dealership?](/knowledge/tl0052)
• [How Many Producers Do I Need to Hire for My Insurance Agency to Grow My Book?](/knowledge/tl0015)
• [How Do I Figure Out How Many People to Schedule Each Day and at What Times for My Single Store?](/knowledge/tl0002) ## Sources - Buildertrend — official pricing and change-order/management-fee features (buildertrend.com)
• Jobber — pricing tiers and quote line-item documentation (getjobber.com)
• Housecall Pro — plan pricing and price-book/add-on features (housecallpro.com)
• ServiceTitan — pricebook and good-better-best pricing presentation (servicetitan.com)
• QuickBooks Online — plan pricing and service-item income tracking (quickbooks.intuit.com)
• Stripe Billing — transaction and recurring-invoice pricing (stripe.com/pricing)
• National Association of Home Builders (NAHB) — cost-plus and markup benchmark guidance (nahb.org)
• Workiz and ServiceM8 — published plan pricing (workiz.com, servicem8.com) ```mermaid

flowchart TD A[Base project bid] --> B{Add value-added fees} B --> C[PM / Supervision 3-6%] B --> D[Permit Handling 250-500 flat] B --> E[Materials Markup 10-20%] B --> F[Mobilization 300-1500] B --> G[Change-Order Admin 75-150/change] C --> H[Fee Revenue] D --> H E --> H F --> H G --> H H --> I[x 85-95% contribution margin] I --> J[Funds back-office staff + lifts avg ticket] flowchart LR M[Model fees in PULSE Calculator] --> N[Set attach rates + amounts] N --> O[Push policy into billing tool] O --> P[Jobber / Buildertrend / ServiceTitan] P --> Q[Collect via Stripe / deposits] Q --> R[Route each fee to its own QuickBooks income item] R --> S[Measure contribution margin by fee type]