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Contractors—often called construction managers—earn a median annual salary of $106,980, or $51.43 per hour. However, your pay can vary widely depending on your experience, the size and type of projects you manage, and where you work.
This guide breaks down contractor salaries across the U.S., what drives the differences in pay, and tips to grow your earnings.
Key highlights:
- Contractors typically make between $65,160 and $176,990
- Massachusetts, New York, and Alaska are among the highest-paying states for contractors.
- Location and experience have the biggest impact on salary.
- Certifications and leadership roles can help contractors earn more.
- Nonresidential building construction is the highest-paying industry for construction managers.
*All data compiled from the U.S. Bureau of Labor Statistics and reputable salary sites such as Glassdoor and Indeed.
How much do contractors make? Hourly and annual salary by state
How much you make as a contractor depends heavily on where you live. States with higher living costs, such as coastal or metropolitan areas, tend to pay more, while rural or lower-cost states often fall on the lower end of the pay scale.
Here’s a detailed breakdown of construction manager salaries by state:
| State | Hourly | Annual |
| Alabama | $44.53 | $92,620 |
| Alaska | $65.21 | $135,630 |
| Arizona | $52.94 | $110,120 |
| Arkansas | $41.90 | $87,160 |
| California | $62.02 | $129,000 |
| Colorado | $58.93 | $101,856 |
| Connecticut | $57.06 | $118,680 |
| Delaware | $65.00 | $135,200 |
| District of Columbia | $61.91 | $128,770 |
| Florida | $49.67 | $103,320 |
| Georgia | $48.73 | $101,360 |
| Hawaii | $59.09 | $122,910 |
| Idaho | $49.46 | $102,880 |
| Illinois | $52.20 | $108,570 |
| Indiana | $47.89 | $99,600 |
| Iowa | $46.30 | $96,300 |
| Kansas | $49.89 | $103,760 |
| Kentucky | $47.89 | $99,620 |
| Louisiana | $50.25 | $104,510 |
| Maine | $50.03 | $104,060 |
| Maryland | $61.78 | $128,500 |
| Massachusetts | $71.03 | $147,750 |
| Michigan | $49.81 | $103,610 |
| Minnesota | $56.49 | $117,500 |
| Mississippi | $45.11 | $93,840 |
| Missouri | $50.17 | $104,350 |
| Montana | $49.43 | $102,820 |
| Nebraska | $46.52 | $96,760 |
| Nevada | $50.26 | $104,530 |
| New Jersey | $62.78 | $130,580 |
| New Mexico | $48.36 | $100,580 |
| New York | $65.16 | $135,530 |
| North Carolina | $50.36 | $104,750 |
| North Dakota | $48.57 | $101,020 |
| Ohio | $46.36 | $96,440 |
| Oklahoma | $46.30 | $96,310 |
| Oregon | $60.90 | $126,660 |
| Pennsylvania | $50.00 | $103,990 |
| Rhode Island | $49.76 | $103,500 |
| South Carolina | $50.02 | $104,040 |
| South Dakota | $54.58 | $113,520 |
| Tennessee | $47.98 | $99,790 |
| Texas | $47.88 | $99,600 |
| Utah | $48.03 | $99,900 |
| Vermont | $47.91 | $99,660 |
| Virginia | $51.44 | $107,000 |
| Washington | $65.47 | $136,180 |
| West Virginia | $36.61 | $76,150 |
| Wisconsin | $54.41 | $113,170 |
| Wyoming | $46.66 | $97,050 |
What states pay contractors the most?
Certain states pay contractors significantly more due to factors like higher living costs, dense urban development, and specialized infrastructure. New York and New Jersey are consistently at the high end of the wage charts because of high housing costs and a steady stream of large-scale residential and commercial projects.
Massachusetts ranks high as well thanks to urban growth and rigorous building standards. In Alaska, remote job sites and complex logistics often lead to higher pay, while Washington D.C. sees competitive salaries fueled by continuous federal and public-sector construction.
The table below shows the top five highest-paying states for construction managers.
| State | Low | Median | High |
| New York | $83,250 | $135,530 | $239,200+ |
| New Jersey | $75,880 | $130,580 | $214,020 |
| Massachusetts | $101,520 | $147,750 | $214,910 |
| Alaska | $99,640 | $135,630 | $215,150 |
| District of Columbia | $81,010 | $128,770 | $209,590 |
What states pay contractors the least?
States with rural populations or limited infrastructure tend to pay less than densely populated or coastal regions. This can be attributed to factors like reduced cost of living, fewer large-scale urban projects, and lower demand for new construction.
Though construction manager salaries are generally solid across the U.S., here are the five lowest-paying states:
| State | Low | Median | High |
| West Virginia | $53,280 | $76,150 | $131,330 |
| Arkansas | $42,590 | $87,160 | $130,650 |
| Alabama | $57,050 | $92,620 | $161,010 |
| Mississippi | $57,390 | $93,840 | $160,280 |
| Iowa | $50,710 | $96,300 | $149,990 |
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Contractor salary by experience level
One of the most encouraging aspects of working as a contractor or construction manager is the clear opportunity for growth. As you gain experience, develop leadership skills, and specialize in certain types of projects, your earning potential increases..
Specializing in areas like roads and highways, bridges and infrastructure, commercial properties, healthcare facilities, or high-rise construction can significantly raise your salary. These types of projects often require more coordination, technical knowledge, and risk management. And these are skills that employers are willing to pay more for.
Here’s a look at how contractor salaries progress as you gain more experience.
| Experience Level | Annual Salary | Hourly Rate |
| Entry (0–2 years) | $65,000–$85,000 | $31–$41 |
| Intermediate (2–4 years) | $85,000–$105,000 | $41–$50 |
| Senior (4+ years) | $105,000–$125,000 | $50–$60 |
| Expert/master or specialized roles | $125,000–$160,000+ | $60–$77+ |
Highest-paying contractor jobs
Some contractor jobs pay more because of the complexity, scope, and technical demands required. Whether you prefer managing large commercial builds or working behind the scenes with utilities and structural systems, here are some of the highest-paying roles in the field:
- Nonresidential building construction ($100,000–$122,000): Oversees the construction of office buildings, retail centers, schools, and other commercial properties with large teams and tight deadlines.
- Utility system construction ($105,000–$120,000): Focuses on building and maintaining water, sewer, and power lines, often involving coordination with municipalities and high-risk job sites.
- Building equipment contractors ($110,000–$118,000): Manages the installation of HVAC, electrical, plumbing, and other critical systems in new and existing structures.
- Foundation, structure, and building exterior contractors ($100,000–$107,000): Specialize in framing, masonry, and exterior elements that require precise structural knowledge and safety compliance.
- Residential building construction ($95,000–$104,000): Supervises the building of homes, apartments, and townhomes, requiring strong customer communication and project planning skills.
What affects a construction manager’s salary?
Several factors influence what you earn as a contractor or construction manager. Here are some of the major ones:
- Certifications and specializations: Earning credentials like LEED (green building) certification or joining a trade union can help you stand out in a competitive market. While green certifications don’t directly increase your pay, they can position you for more profitable projects and leadership roles that require sustainability expertise.
- Role and level of leadership: Your salary often reflects your level of responsibility. Specialists who focus on one area, like electrical systems or framing, may earn solid wages, but supervisors and project managers who oversee full-site operations typically earn more due to their broader scope and higher accountability.
- Industry demand and growth outlook: The construction industry is on the rise. In fact, employment for construction managers is expected to grow 9% between 2024 and 2034, which is faster than average. With this growing demand comes increased opportunity for those entering the field or expanding their skills.
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FAQ
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What type of contractor makes the most money?
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Contractors in specialized and technically demanding fields tend to make the most money. Building equipment contractors (HVAC, electrical, plumbing) and utility system contractors (water, sewer, power lines) often make over $110,000 per year. Nonresidential building contractors managing large commercial projects also rank high, with pay reaching up to $122,000 annually.
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How does a contractor get paid?
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Contractors are usually paid through project-based contracts, hourly rates, or cost-plus agreements. Many charge progress payments tied to project milestones, while others take an upfront deposit and collect the remaining balance upon completion. Independent contractors may also bill clients directly through invoices rather than receiving a salary.
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Is contractor a stressful job?
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Yes, being a contractor can be stressful. Contractors often juggle tight deadlines, budget pressures, safety risks, and coordinating multiple teams at once. While the role can be demanding, many people find the challenge rewarding—especially with the higher earning potential and independence it offers.
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What’s the difference between a contractor and a construction manager?
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The terms “contractor” and “construction manager” are often used interchangeably, but “construction manager” is more precise. While a contractor can refer to professionals in many different trades or industries, a construction manager specifically oversees building projects, including budgeting, scheduling, and team coordination from start to finish.
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What skills and education do I need to become a construction manager?
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Most construction managers hold a bachelor’s degree in construction, engineering, or a related field. Strong project planning, budgeting, and leadership skills are essential. Many start in trade roles and move up through on-the-job experience.
