Contractor Profit and Overhead

Topic: 
Contractors and Construction Contracts
Question: 

Is it customary for a contractor to add a 10% overhead and 10% profit on work that he did not do? The electrical work was done by someone else who came on the job before we had decided on a contractor. The carpet was chosen by me at a nearby carpet store. Now, our contractor and our insurance adjuster are deadlocked. The adjuster says he won't pay those extra charges and the contractor says he won't do another days work until he does. Please help!

Answer: 

First of all, let's start with the basics. The general contractor's main job is to manage and coordinate the work. Some general contractors "don't do any work at all" i.e.,. they don't pound nails etc., but they are outstanding organizers, managers and supervisors. Their job is not easy, and