Why You Should Never Share Your Material or Labor Prices With a General Contractor
Posted by Pinch Estimating on Jan 17th 2026
Estimating • Subcontractors • Profit Protection
Why You Should Never Share Your Material or Labor Prices With a General Contractor
In construction, one of the most expensive lessons a subcontractor can learn is this: If you show a general contractor your material or labor pricing, you are teaching them how to beat you down — not how to work with you.
The Big Idea
This isn’t paranoia. It’s not bitterness. It’s not a lack of teamwork.
It’s experience.
Across nearly every trade — electrical, mechanical, drywall, concrete, framing, roofing, finishes — subcontractors who openly share their internal pricing almost always regret it later. The result is predictable: margins disappear, scope creeps, expectations increase, and suddenly you’re working harder for less money than you agreed to.
Let’s talk about why this happens, what to do instead, and how to protect yourself without burning relationships.
The Myth of “Transparency” in Construction Bidding
General contractors often frame pricing requests as “just transparency” or “helping the owner understand the numbers.” On paper, that sounds reasonable.
In reality, transparency in construction bidding is rarely symmetrical.
Ask yourself:
- Has a GC ever shown you their true overhead?
- Their markups on subs?
- Their risk premiums?
- Their deal with the owner?
Of course not.
Yet subs are regularly pressured to:
- Break out labor rates
- Disclose material costs
- Share supplier invoices
- Explain crew productivity assumptions
Why GCs Ask for Your Breakdown (The Real Reasons)
When a GC asks for your labor and material pricing, it’s usually for one or more of the following reasons:
To Shop Your Numbers
Once your breakdown is shared, it can be:
- Compared against other subs
- Used to pressure competitors
- Leveraged to demand matching prices
Your estimate becomes a benchmark weapon against you.
To Force Margin Compression
If a GC knows:
- Your material costs
- Your labor hours
- Your hourly rate
They can say:
“You should still be making money at this lower number.”
They decide what your profit should be — not you.
To Redesign the Scope Without Paying for It
When GCs understand your cost structure, they can:
- Push substitutions that shift risk to you
- Remove “non-essential” items that protect quality
- Demand tighter schedules without compensation
You still own the outcome — just not the margin.
To Win Their Negotiation With the Owner
Your breakdown may be used to:
- Justify their own markup
- Explain why you should absorb cost overruns
- Prove “cost savings” that never reach you
You become leverage in a negotiation you’re not part of.
The Result: Working for Free (or Worse)
This is how subs end up:
- Doing unpaid coordination
- Absorbing material escalations
- Adding labor for “minor clarifications”
- Financing the project with their own cash flow
The punchline:
- The GC still makes money.
- The owner stays happy.
- The sub takes the hit.
How to Say No Without Burning Bridges
You don’t need to be defensive or confrontational. The key is redirecting the conversation.
Professional response
“Our pricing is based on internal costs and experience. We’re happy to clarify scope or review alternates if needed.”
Firm response
“We don’t release labor or material breakdowns, but we can revisit the scope to align with budget goals.”
If they keep pushing
“That information is proprietary. Our total price reflects the work required to meet the plans and specs.”
Strategic response
“If the number doesn’t work, let us know your target and we can explore scope adjustments.”
Notice the pattern:
- You’re cooperative
- You’re calm
- You’re not giving away leverage
When Sharing Pricing Can Make Sense (Rare Cases)
There are exceptions — but they must be agreed to up front.
- Cost-plus contracts
- True open-book projects
- Long-term GC partnerships with proven trust
- Change orders (only incremental pricing)
Why This Matters More Than Ever
Today’s construction environment is brutal:
- Tight margins
- Labor shortages
- Material volatility
- Schedule compression
Subs are being asked to absorb more risk than ever before — often without compensation.
Protecting your numbers isn’t selfish. It’s how you stay in business.
The Future: Smarter Tools, Stronger Boundaries
This exact issue is why modern estimating tools — especially AI-driven takeoff platforms — must separate:
- Quantities from pricing
- Scope clarity from cost disclosure
The future of construction estimating isn’t about exposing internals — it’s about empowering contractors to price confidently without being dismantled in negotiations.
Final Thought
Here’s the rule every subcontractor should live by:
Your price is your price.
Your costs are your business.
General contractors don’t need to know how you make money — only that you can deliver the work as specified.
Protect your numbers. Protect your leverage. Protect your company.
Because once your pricing is out there, you can’t get it back.
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