Q for the GCs out there...

[YeLLowBoaT]

How much do you mark up subs prices???
Just kind of wondering I ran into to something today that I though was a little bit extreme...

[stoker]

Residential around 20%. Commercial anywhere from 8% - 15% depending on the size of the job.

[Schiada76]

Residential remodels 60 to 70%.
New Residential 30%
TI 50%

[BrendellaJet]

Residential remodels 60 to 70%.
New Residential 30%
TI 50%
Damn, give me the name of your biz so I know who not to use on my remodel.

[boats&bars]

some contracts state that subs can make no more than 15% ohp
many large GC's overhead are 7 to 9 % so its hard to make money cause eveyone is so hungry....

[Mandelon]

Are you kidding? As much as I can.... :D At least 20% on their quotes, cuz sh*t happens and sometimes those bills go up.
Its rare that we use subs, almost all we do is in house. And the majority of our work is for financial institutions.

[YeLLowBoaT]

damn I'm at 10-20%( normally on bigger jobs I shoot for cost +% deals...takes all the stress out of bidding)...seems like I need to charge more...
The reason why I made this thread was a client of mine got dinged by a "restoration company" for 3800 and change( long story), only prob was the guy that actually did the work only charaged $1200 and change... for a mark up of 300% :eek:
Seem alittle bit high to me...

[OCMerrill]

damn I'm at 10-20%( normally on bigger jobs I shoot for cost +% deals...takes all the stress out of bidding)...seems like I need to charge more...
The reason why I made this thread was a client of mine got dinged by a "restoration company" for 3800 and change( long story), only prob was the guy that actually did the work only charged $1200 and change... for a mark up of 300% :eek:
Seem a little bit high to me...
"SOME" - Restoration companies are notorious for the "grab all you can" mentality. Most of the time insurance will only cover a portion of the work based on whats in the policy. If there is mold the homeowner is usually on their own and left to major $$ exposure based on the Fear Factor. This is a real problem if the insurance company starts the work with their "favorite" company and then the balance of the inflated bill goes to the homeowner.
They remove all the wet crap, suck the water out, run a blower and a dehumidifier, and then often sub the work out to joe's handyman service to fix the drywall and blow up his numbers big time. As much %% as they feel they can. I have heard of some 4 and 5x markup!
We do allot of restoration work but I am on the HOA/Property Mgmt. side of things (no private work) and do all the work start to finish for contractor rates. These are backed up with photo documentation as well. Property managers know what the jobs are worth so it's a bit more difficult for a large restoration company to slam one in. Not that I don't hear of it from time to time.
Just this week we completed a job that a water damage company was booted from.

[Cas]

I usually have the owner pay the sub direct so I don't have to mark it up. I just let them know if I pay the sub, I'll have to mark it up x amount of money. That x amount of money isn't worth the time it takes to do all the paperwork to me. Since I usually save the owner a few bucks, I now have a client for life and someone that'll be doing a lot of work of mouth advertising for me.

[slotracer]

I now have a client for life and someone that'll be doing a lot of word of mouth advertising for me. if more people thought this way there would be a whole lot less fly by nights out there. i have worked for the same company over 30 years now and have seen mark up's that are way out of hand but the people do not know they are getting screwed by the company.

[Cas]

oops, that's "word" of mouth

[Wheeler]

oops, that's "word" of mouth
I understood what you meant, then again not one to hang on words, I passed right by the typo. :D
Ps. my hats off to you

[Cas]

I understood what you meant, then again not one to hang on words, I passed right by the typo. :D
Ps. my hats off to you
thanks! I also didn't make too many contrator friends last year. Most other contractors were raising their prices when we had the big floods and I was offering discounts to flood victims ;)
On top of that, this year I have a Senior Citizen discount on all my phone book ads. Yep, the other guys aren't too happy with me :D

[Schiada76]

Damn, give me the name of your biz so I know who not to use on my remodel.
Go to all the seminars I have, subscribe to all the industry magazines I do, join the local and national trade groups I have and stay in business for thirty years and you'll see those are fair markups.:D

[jojoteez]

Commercial anywhere from 7 - 15% depending on the sub. I would say 10% is average.