I just started a 6-month project in Los Angeles, under a cost plus fixed fee contract, a little under $60K of GC fee, on a job of $550k total construction budget including GC fee but excluding architect/engineer/city fees. This comes to 17% of subcontractor fees, excluding $150k of finish materials that I handle the ordering myself and he just needs to double check for specs (electrical fixtures, plumbing fixtures, wood floor, tiles, windows, doors, etc etc). My theoretical saving (on paper only since the project just started) is about $50k, i.e. a little less than 10%, compared to the lowest lump sum bid that I have got out of five bids. If any sub or some of the numbers that were not locked in don't pan out the saving could be less.

I found most of the subs and pay them directly. Completely open book. So far the GC hasn't been helpful with finding subs; he has recommended his one sub for each trade, but I found them too pricey. And that seems to be the extent of his network. I ended up interviewing and screening from Angie's list, Yelp, and some referrals from architects or other contractors. I have control over who to hire provided that they are licensed and insured.

The GC is easy enough to communicate with, but he is on the younger side and doesn't feel very established and in high demand. He provides warranty and liability insurance. My home owner policy covers fire and theft during construction (it's an addition to an existing home that we occupy). He had about 15 years of experience as a framer, foreman, and project manager for small developers. Seems experienced enough for our job. References were smaller renovations with lower budget, and the owners loved his attitude and had no complaints a couple of years later. I've visited one small addition that he built; the rest I've only seen photos. My architect and engineer are involved with site visits and inspections.

Questions:

(1) Is the GC fee reasonable considering the arrangement and qualification? Is it normal that I'm sourcing the subs?

(2) How much time did your GC spend on site? And when?

Mine shows up about 4 days a week, anywhere from 15 minutes to 2 hours, only during the middle of the day because that's the best time for LA traffic. Usually the time is on the lower end, except at the beginning to get the subs started. We've had some small problems when he gave instructions and left, and then the instructions were not carried out, and he wasn't there to ensure execution before the workers left. It took him extra days to get that done. And there was some confusion when workers arrived at 7am, and needed something or had questions. Nothing disastrous (yet). I suppose a GC is not a site foreman, but I feel that the start and wrap of each day is critical. Is my GC's site appearances in line with what you experienced?