Are main contractors really cheaper than IDs?

Honestly no, it’s just the margin they want to charge, and we sound like a broken recorder at this rate.

Watch our tiktok channel if you lazy to read.

The line between a main contractor and an ID is extremely grey now.

We dare say 95% of people looking for a main contractor are looking for a cheaper quotation.

The idea is that an ID charges more for their design. If I already know what I want, I can go to a main contractor who just execute and charge me lower.

Wrong! For normal home renovation, it doesn’t mean ID = expensive, contractor = cheap.

Let’s first understand the genesis of a main contractor.

It comes from the construction industry. When projects are extremely huge (eg. commercial buildings or even landed rebuild etc.), it is impossible for one individual to manage both the design and the execution.

Hence, the architect, or qualified person (QPs), will bring in a main contractor to oversee the execution. These people have strong technical knowledge, and have access to a wide connection of subcontractors from different trades. They will then ensure the construction is completed as per the drawings.

These projects are often millions in cost and above.

For normal home renovation, it is nowhere near the same scale as construction.

Most IDs work directly with the subcontractors. This is the same as the main contractors.

Hence, all the matters is the margin that they want to take. Period.

Granted, IDs tend to be greedier, and some IDs do still pass it off to main contractors, resulting in an additional layer of cost.

But we have also seen main contractors that make use of their “contractor” status and mark up 40% or more. For example, charging $8,000 for retiling works in a bathroom.

That’s why we say it’s not about ID or main contractor! It’s all about the margin the person takes!

Follow us below to hear more!