Just Because/Job Profit
- Thread starter sean
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bphgravity
Senior Member
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- Florida
Re: Just Because/Job Profit
I think it is absolutely necessary to put a overall profit markup at the end of a bid. This is the money that can be put back into the business or that goes directly into the pocket of the owner. I tend to increase my proposals by 15% to 25% over the labor and material costs. (Labor x hours + materials / .6 + 15% to 25%)
I think it is absolutely necessary to put a overall profit markup at the end of a bid. This is the money that can be put back into the business or that goes directly into the pocket of the owner. I tend to increase my proposals by 15% to 25% over the labor and material costs. (Labor x hours + materials / .6 + 15% to 25%)
Re: Just Because/Job Profit
You should definately have overhead and profit on material. It cost you time you could have been on a job making money to go get the material, right?
A good fair rate for OH and profit on material is 20%.
Your labor estimate on the otherhand should not have profit tacked on at the end. Your labor rate should already have OH and profit built into it. If you are worried your time estimates are off, then add a 20% contingency on your time estimate.
You should definately have overhead and profit on material. It cost you time you could have been on a job making money to go get the material, right?
A good fair rate for OH and profit on material is 20%.
Your labor estimate on the otherhand should not have profit tacked on at the end. Your labor rate should already have OH and profit built into it. If you are worried your time estimates are off, then add a 20% contingency on your time estimate.
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