What Do Most General Contractors Charge Per Hour?

Understanding General Contractor Hourly Rates in 2025

If you're planning a kitchen remodel, bathroom renovation, or any significant home improvement in Beverly Hills or Los Angeles, you've probably asked yourself: "How much does a general contractor actually cost per hour?" The answer isn't as straightforward as you might think—and that's actually good news if you understand what you're paying for.

The Real Numbers Behind Contractor Rates

Let's start with what the data actually shows. As of 2025, the average licensed general contractor in the United States charges around $46 to $47 per hour. Sounds reasonable, right? But here's where things get more nuanced. Residential contractors typically run slightly lower at $36 per hour on average, while top-tier contractors with years of experience and strong track records can command $60 to $66 per hour. In premium markets like Beverly Hills and the greater Los Angeles area, expect rates toward the upper end of that range.

The real kicker? Some contractors charge $25 an hour, and others push $100+ per hour. The difference isn't just about greed—it's about who's standing in your home wearing a hard hat.

Why Hourly Rates Vary So Much

A contractor charging $30 per hour is usually working alone, carrying minimal overhead, and taking on serious liability without proper insurance. They're probably cash-only, lack formal business infrastructure, and won't be around if something goes wrong next year. On the flip side, a contractor charging $65 per hour is investing that money into licensing, bonding, workers' compensation insurance, ongoing training, fleet maintenance, and the capacity to handle complex projects with multiple trades involved.

When California Construction & Remodeling Experts quotes you a rate, you're not just paying for the time someone spends in your home. You're paying for their experience navigating Beverly Hills building codes, their relationships with subcontractors, their ability to pull permits correctly, and their legal responsibility if something goes wrong.

What Determines Your Contractor's Rate?

Experience Level: A contractor with 15 years managing luxury kitchen remodels in Beverly Hills will charge more than someone doing their first renovation. That premium reflects knowledge that saves you money elsewhere.

Licensing and Credentials: California requires general contractors to be licensed through the Contractors State License Board (CSLB). An unlicensed person might charge less, but they expose you to massive liability. Licensed contractors factor in the cost of maintaining and renewing their license, plus compliance training.

Insurance Coverage: A professional general contractor carries liability insurance and workers' compensation. These costs—often $15,000 to $40,000 annually—factor into their hourly rate. Cheaper contractors? They might skip this entirely, leaving you exposed to risk if someone gets injured on your property.

Overhead and Infrastructure: Established firms have offices, administrative staff, insurance, payroll processing, and equipment. A one-person operation doesn't. That overhead appears in the hourly rate and reflects business stability.

Project Complexity: A general contractor managing your kitchen remodel coordinates plumbers, electricians, cabinetmakers, and tile installers. They're essentially running a small business on your property. That coordination premium is baked into the rate.

The Hourly Rate Trap

Here's what trips up many Beverly Hills homeowners: fixating on hourly rates instead of total project cost. A contractor charging $35/hour on a poorly-scoped project might cost you $50,000. A contractor charging $65/hour who manages the same job in less time with fewer surprises might cost $45,000.

That's why California Construction & Remodeling Experts doesn't just quote an hourly rate—we provide detailed estimates that break down the entire scope. You know exactly what you're paying for, how long it will take, and what to expect.

Related Reading: Understanding the difference between handyman and contractor pricing is crucial. Is it cheaper to hire a handyman or contractor? Let's explore when hourly rates actually translate to better value.

What You Should Actually Negotiate

Instead of arguing about hourly rates, focus on:

• Fixed price estimates for well-defined scopes

• Detailed material breakdowns (not just "cabinets $15,000")

• Clear timelines for each phase

• Payment schedules tied to project milestones (never large upfront deposits)

Your Next Step

If you're comparing contractors, don't make your decision solely on who quoted the lowest hourly rate. Instead, ask each contractor:

1. Is this a flat project price or an hourly rate with unknown total cost?

2. What's included in the scope? What's excluded?

3. How do change orders get handled?

4. What's your crew's experience with Beverly Hills permits and inspections?

When you're ready to move forward with a contractor who understands Los Angeles County building standards and delivers transparent pricing, California Construction & Remodeling Experts is here to help. We've built our reputation on honest estimates, licensed expertise, and projects that enhance both your home's function and its market value.

Related Posts in This Series

• Is it cheaper to hire a handyman or contractor? — Compare costs for different project sizes

• Is it worth getting a general contractor? — Understand the ROI and value proposition

• How do I hire a local contractor? — Complete 10-step hiring guide

Ready to talk about your remodel? Book a free in-home consultation with our team at (323) 638-7558, or visit us at 9100 Wilshire Blvd. E. Tower STE. 333, Beverly Hills, CA 90212. Check out our kitchen remodeling experts in Beverly Hills page to see our portfolio and service areas.