Full Definition of DERIVATIVE. 1. : a word formed by derivation. 2. : something derived. 3. : the limit of the ratio of the change in a function to the corresponding change in its independent variable as the latter change approaches zero.4. a contract or security that derives its value from that of an underlying asset (as another security) or from the value of a rate (as of interest or currency exchange) or index of asset value (as a stock index). See derivative defined for English-language learners. See derivative defined for kids.
So, how much does a contractor cost, anywhere from 5% to 25% of the total project cost, with the average ranging 10-15%.xactly how a general contractor charges for a project depends on the type of contract you agree to. There are three common types of cost contracts, fixed price, time & materials and cost plus a fee. Each contract type has pros and cons for both the consumer and for the contractor.
Fees can be a fixed amount or based on the construction cost. CM fees will vary with the services that the CM provides. Typical CM fees are about 3-5% of construction costs and should be paid based on the completion of specific phases of construction. Owners should structure payments to CM so that most of the fee is received once the project is complete with the project completed and the general contractor paid in full.