General Contractor vs. Hiring Sub-Trades Directly in Vancouver: True Cost Comparison
Conventional wisdom says hiring sub-trades directly saves the 15–25% general contractor markup. But the calculation is far more complex than that. Here’s an honest analysis.
The Math: Where the GC Markup Goes
A general contractor charges 15–25% over trade costs. This markup covers:
- Project management (schedule coordination, daily supervision, subcontrade management): 5–8%
- Insurance premium (contractor’s CGL policy covering your project): 1–2%
- Permit acquisition and compliance: 1–2%
- Site overhead (tools, consumables, cleanup, waste disposal): 2–3%
- Warranty and deficiency management: 2–3%
- Profit margin: 3–8%
If you hire sub-trades directly, you are taking on all of the first four categories yourself.
What Self-Managing a Renovation Actually Costs You
Your Time (The Hidden Cost)
Managing a $150,000 renovation requires approximately 200–300 hours of owner time: sourcing and quoting trades, coordinating schedules, ordering materials, managing deliveries, handling inspections, resolving disputes, and making daily decisions. At a conservative $100/hr opportunity cost, that’s $20,000–$30,000 in time — more than the GC markup you saved.
Trade Sequencing Mistakes
Trades must be sequenced precisely: demo → rough plumbing → rough electrical → framing inspections → insulation → drywall → cabinet rough-in → tile → cabinets → plumbing trim → electrical trim → appliances → punch list. An experienced GC knows these sequences and has relationships with inspectors. A first-time project manager will almost certainly need at least one re-sequence, adding cost and time.
Trade Access: Direct Hiring is Harder Than It Sounds
Vancouver’s good tradespeople are booked 3–6 months out and prefer to work through trusted GCs. Direct-hiring homeowners are last priority. You will either wait longer or accept less experienced tradespeople.
When Direct Hiring Actually Makes Sense
Direct hiring can work when: you are a construction professional yourself; the project is a single trade (only plumbing, only electrical — not a full renovation); or you are doing a DIY project with one or two licensed inspections. For multi-trade renovations, the GC markup typically delivers more value than it costs.
How to evaluate a GC → | Get a VGC quote →
→ See also: Vancouver Renovation Planning Guide
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