NYC 10 On 10 Mark Up(taxable Materials)?

tmccafferty

I have a t&m contract with a client that is somewhat loosely arranged. I have charged for all materials and all tax on those materials as line items in each invoice. At the end of the invoice I mark up everything list in a compounded 10 on 10 standard. My client is disputing the mark up of the tax on the items. This is a residential job in New York City. I have always charged the tax and marked it up but my client is claiming this goes against all standards. I need some advice. Any thoughts out there?

dirt diggler

what does your contract say?

tmccafferty

Contract doesn't say specifically. The contract is essentially the first invoice which defines that job as a time and materials job. I came into this from project management and drafting. My partner was already established and said not to worry. I am only worried about the tax thing.

skyhook

If I use my truck, time and money to pick it up, I mark up the total (including tax) invoice. Is 10 on 10 100% ?

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tmccafferty

10 on 10 is a compounded markup. Subtotal of all line items plus 10% overhead. Total of these two plus 10%profit gives you your grand total. Hence 10 on 10 compounded and not a straight 20% markup.

mahlere

we won't even go into all the headaches you are setting yourself up for with your current billing system.

My only comment is this:

WTF does a residential customer know about "all standards" in regards to running a contracting business?

figure out what the actual difference would be. and decide if the money is worth it. If you cave now, you can never work for this customer again (after this project) because you just dropped your pants. If you don't cave, you have a 50-50 chance of future work, but on your terms.

Run your company. Don't let them dictate how you run it.

And for the record, if I pay tax on an item, it's part of my cost. It get's marked up.