### Cost Analysis: Hidden Expenses and True Value

Comparing costs between general contractors and individual subcontractors requires understanding all expenses involved, not just direct labor and material costs. Comprehensive cost analysis reveals true project expenses while helping make informed financial decisions.

Direct cost comparison should include not only subcontractor prices but also general contractor markup, which typically ranges from 15-25% above direct subcontractor costs. However, markup provides value through coordination, oversight, insurance, and professional management that individual arrangements lack.

Coordination costs include homeowner time investment in managing schedules, resolving conflicts, coordinating materials, and overseeing quality. Calculate coordination time at reasonable hourly rates to understand true cost of self-management approaches.

Delay costs result from scheduling conflicts, coordination problems, and mistakes that extend project timelines. Delays often cost more through extended living disruption, additional temporary housing, and lost productivity than general contractor markup would have cost.

Quality control expenses include costs of correcting substandard work that might have been prevented through professional oversight. Poor coordination often results in work that must be redone, increasing total project costs significantly.

Insurance and liability costs vary between arrangements, with general contractors providing comprehensive coverage while individual subcontractor arrangements may require additional insurance or create uncovered liability exposure.

Problem resolution expenses include costs of resolving disputes between trades, correcting coordination mistakes, and addressing quality problems that professional management might have prevented. These expenses often exceed general contractor markup costs.

Material management costs include time and expenses for ordering, receiving, managing, and coordinating material deliveries. Professional material management often achieves better pricing and prevents costly delays.

Permit and inspection costs may be higher with individual subcontractor arrangements if coordination problems cause failed inspections or if multiple permit applications are required instead of comprehensive project permits.

Opportunity costs include value of homeowner time invested in project management that could have been used for other productive activities. High-earning homeowners often find general contractor services cost-effective when opportunity costs are considered.

Long-term value considerations include warranty coverage, professional accountability, and quality outcomes that may justify higher upfront costs through better long-term value and reduced maintenance requirements.