Do you mark up your subcontractors work? and how much?
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When I was in business. (I am retired) I did mark up some subs. Maybe 10%. It all depended on how deep the clients pocket were. A big business was sure to have a mark up. Residential may not get marked up. Also it depended on how much leg work was involved putting together the bid.
Mark up? Yes.
Subs take direction from me, whether I supply them or the homowner. You have a choice to either charge for that direction or not. It takes time out from your normal work, adds demands on your time you probably didn't budget for. Either a line item of mgmt or the markup, I find the markup easier.
10 % for those I bring in. 10 plus for homowner supplied.
A great place for Information, Comraderie, and a sucker punch.
Remodeling Contractor just outside the Glass City.
http://www.quittintime.com/
We mark up subs 25% same on material. This is in addition to the $ in the budget for time spent scheduling, directing, etc. while they're on the job.
You put your name on their work, right? If they screw up, you accept responsibility for making good, whatever the cost, right? You have to hire several bad ones to find the good ones, and that cost you, right?
We mark them up the same % as labor and materials, weather the job is bid, or t&m.
Huck said it first. I just agreed with him.
Here's one of my general rules of business.....
If it's my phone that is gonna ring if/when something goes wrong...... it gets marked up.
Yeah, that says it all right there.
In a nut shell.When everthing is going your way, you're in the wrong lane
well said.point taken thx all for the comments
Your phone rings, then your wallet rings shortly thereafter.
when I started out on my own the past year...One of my big mistakes was trying to do clients a favour by not marking up. BIG mistake.....what a waste of time for a lot of hassle.
Mark up...and 10% sounds low...but I guess it depends.
Dieselpig.....makes the point very well.
10% does sound low. In most cost plus arrangements GC's charge 20% and up.
Runnerguy
Let's see, if my insurance and overhead takes 6% and I only mark up ten percent, is four percent enough to cover the risks?....
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How'd you get your non-insurance OH down to 3%?? I need to take lessons in that.
Office in home minimal cost
Bill my hours cost plus and charge for estimating and design.
Track costs to bill them out.
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To be honest, that was a rhetorical question, but two years ago, that was mu OH. This past year, I have done a lot of smaller jobs instead of one large one so I am sure that when I recalculate end of year, I will find higher OH costs now.
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I'm around 13% for the last 12 months, including insurance. Maybe I should move in with you.
I am a sub. I know my prices are marked up, from time to time I even figure out my price and the price for the contractor. I think the normal markup in my area is 20%