What is the typical contractor markup on garage construction materials in New Brunswick?
What is the typical contractor markup on garage construction materials in New Brunswick?
Contractor markup on garage construction materials in New Brunswick typically ranges from 10-30% above their wholesale cost, with most established contractors marking up materials by 15-20%. This markup covers the contractor's time to source, order, transport, and manage materials, plus provides part of their profit margin on the project.
Material markup varies significantly by item type and contractor business model. Framing lumber, which contractors buy in large quantities and have established supplier relationships for, often carries a 10-15% markup. Specialty items like garage doors, electrical panels, or engineered trusses that require special ordering may see 20-30% markups. Concrete is typically marked up minimally (5-10%) since it's delivered directly to the site and contractors have less handling involved.
Many NB garage contractors use a "cost-plus" approach rather than itemizing markups. They'll quote you a total project price that includes their material costs, markup, labour, overhead, and profit all rolled together. A typical two-car garage project might break down as 40-50% materials, 30-40% labour, 10-15% overhead, and 10-15% profit. The material portion already includes their markup, so you're not seeing it as a separate line item.
Seasonal timing affects material costs and markups in New Brunswick. During peak building season (May through September), contractors with busy schedules may maintain higher markups because demand is strong. In slower periods (late fall through early spring), some contractors reduce markups to stay competitive and keep crews working. Lumber price volatility also affects how contractors handle markup — when prices are rising rapidly, some contractors quote materials at cost-plus-10% to protect themselves from price increases between quote and delivery.
The markup covers real services beyond just profit. Your contractor is using their trade accounts to get better pricing than you could get at retail, managing delivery schedules to coordinate with construction phases, handling returns and exchanges, and taking responsibility if materials are defective or damaged. They're also carrying the financial risk — most suppliers require payment within 30 days, but your contractor may not get paid until project completion.
Geographic location within NB affects material markups. Contractors in Moncton, Saint John, and Fredericton typically have lower markups because they're closer to major suppliers and have more competition. Rural contractors or those in northern NB communities may have higher markups (20-30%) because they face higher transportation costs and have fewer supplier options. A contractor in Bathurst or Edmundston pays more to get materials delivered than one in Dieppe.
You can sometimes negotiate material handling. Some homeowners ask to supply their own materials to save the markup, but most experienced contractors discourage this. If you supply materials and they're wrong, defective, or delayed, it becomes your problem and can delay the entire project. However, for expensive specialty items like premium garage doors or high-end electrical panels, some contractors will let you purchase directly and just charge a handling fee.
Transparency varies by contractor. Some NB garage builders will provide detailed material lists with their costs clearly shown, while others prefer to quote the project as a lump sum. Neither approach is inherently better — what matters is that the total price is competitive and fair for the scope of work. Always get multiple quotes to understand the market rate for your specific garage project.
When evaluating quotes, focus on the total project cost rather than trying to dissect material markups. A contractor with higher material markups might have lower labour rates, better warranties, or superior project management that provides better overall value.
Need help finding garage contractors who provide transparent, competitive pricing? New Brunswick Garages can match you with local professionals who understand NB's unique construction requirements and provide detailed quotes for your project.
Garage IQ -- Built with local garage expertise, NB knowledge, and real construction experience. Answers are for informational purposes only.
Ready to Start Your Garage Project?
Find experienced garage contractors in New Brunswick. Free matching, no obligation.