It’s easy to assume that profit is just extra money tacked onto your build, and that the cheaper the builder, the better the deal. But in reality, a healthy builder profit isn’t just fair — it’s essential. It’s the safety net that protects your investment, ensures quality, and keeps your project on track from groundbreaking to move-in.

When you’re building a custom home, you may notice that your builder’s fee isn’t just covering materials and labor. You might wonder how that number is calculated or why it matters to your project.

Most people focus on physical costs like lumber, drywall, cabinets, and flooring. While these are important, they’re just the surface layer. A builder’s profit allows them to manage everything happening behind the scenes.

• Project management and scheduling – Coordinating dozens of tradespeople, vendors, and deliveries, all while keeping your project on track.
• Quality control – Inspecting each phase to ensure it meets the right standards before moving on to the next step.
• Warranty and post-move-in support – Standing behind your home long after the last nail is driven.
• Licensing, insurance, and risk management – Protecting both the builder and the homeowner from liability, accidents, or unforeseen complications.
• Experience and decision-making – Years of hands-on expertise prevent mistakes, save time, and avoid unnecessary costs.

• Hire and retain skilled tradespeople who deliver high-quality work
• Keep projects on schedule and avoid costly delays
• Communicate clearly with homeowners throughout the process
• Stand behind their work for years after move-in
• Maintain proper licensing and insurance

A builder operating on razor-thin margins often struggles to maintain these standards. You may notice it in missed deadlines, inconsistent quality, or poor communication, all of which cost the homeowner more in stress, time, and money.

Most professional builders work on a management fee or markup that typically falls between 15–25% of the total project cost.

This percentage reflects:

• The builder’s experience and track record
• The level of risk associated with your project
• Market conditions and material costs
• The complexity and scale of your build

Think of it as paying for peace of mind. A fair fee ensures your builder can manage your home responsibly, handle problems as they arise, and protect your investment throughout the process.

The lowest bid is rarely the best choice. The best builder is the one who:

• Ensures your home is done right, from foundation to finish
• Stands behind their work for years after you move in
• Communicates openly and honestly
• Protects your investment with proper licensing, insurance, and oversight

When you hire a builder who values quality, experience, and accountability, you’re not just buying a house. You’re buying confidence, security, and a home you’ll love for decades.

At The Shellhammer Group, Tim Shellhammer brings decades of hands-on experience in custom home building. His expertise, paired with a team dedicated to quality, attention to detail, and clear communication, ensures every project runs smoothly from start to finish.

A builder’s profit isn’t just a number on a sheet. It reflects the planning, professionalism, and experience that go into every home we build. We are completely transparent about where every dollar of your investment is going, so you always know exactly what you are paying for. When you choose The Shellhammer Group, you’re not just hiring a contractor. You’re partnering with a team committed to protecting your investment and making sure you love your home for years to come.

With Tim’s decades of experience guiding every decision, your home is in capable, experienced hands, and your dream home will be built right the first time.