Cost Plus % Contract

chaney

Hi everyone,

I want to know if anyone can help me with a cost plus percentage job? I am bidding a job that will come in probably around $300,000 - $325,000. The job is an old lake house that has a lot of unknowns,and the home owner said they can't make all the decisions now, until they see the project in progress. So I thought that cost plus is the way to go, but I am not sure how to do this. I know my mark up will be 20% on all subs and material. How do I bill for my employees, overhead, profit, my general contracting fees, if I am actually working in production and my salary. I need to give them a written proposal.

What a great web site,

Brad

Meetre

first, welcome to the site. Second...pricing questions are frowned on here, especialy by new guys...most here hold their pricinig close. if it's a cost plus job, you charge the customer cost plus. If you have in-house guys working on it, you charge what you would charge another contractor for the "sub" work. Then, add your % to that and bill the customer...cost plus.

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Bodger

Do you mean things like discussing hourly wages, mark-up percentages, overall profit, things like that are frowned on? I ask because I'm new myself and don't want to get into areas that are not generally discussed.

Meetre

think of it this way...this is an open forum on the internet...your clients can google your name, or a problem that they have, and this site will come up. try this, do a search in google for Meetre Construction...you will find my site AND links to the most viewed threads on this site that I have responded to. Do you want your customers to be able to find out what your numbers are? How about this, I tell you that I charge $50/man hour...can you survive on that in LA? your client sees my post on this web site that you post to and in their mind if you charge more, you are ripping them off. It just all around bad policy to talk about that kind of info here. Asking about this cost plus isn't bad, just don't get into too many details. If you get to know some ppl here and they like and trust you, they will get into the more detailed prices with you, just not in the forums...mostly through pm's and e-mail. New guys with money questions get ripped a new arse hole. Most don't come back.

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Buckknekkid

On a cost plus contract you must spend an enormous amount of time detailing the scope of work, creating time sheets and get them signed off. FREQUENTLY You MUST document everything and get a retainer to cover all costs up front. when that runs out so do you. Why would you finance this job.

Heritage

Many different variations.

The way I do it is:
I charge for:
Site supervision
Lead carpenters
assistant carpenters
laborourers etc etc.
At an appropriate hourly fee through a sister company.

Subs
Materials
Employees
Added up +20%.

Theres more detail but that's the bulk of it.

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woodmagman

You can give them an hourly rate with all of that built in. Eg: $75.00 per per man, material purchases will have a 15% or what ever you need to processing and handle. You are not going to be able to mark items up to much as you are not taking any risk, only acting as a purchasing agent and supplier of labour.

dayspring

All of the above looks good, except where is the profit, or is that included in the 20% markup?

I bill hourly per man, add my overhead plus a percentage, depending on the job, for profit

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RED HORSE 554

Total cost of the job by your bid Pluss 20% of total added giving you the billing totals.with openers if the unseen becomes totaly out of scope. foundation mold asbestos or lead

Stone Mountain

Here's another one. Joins 6 months ago, no introdyction, just one question, never hear from them again!

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jcalvin

My question is how does he plan on pricing something when the owners don't even know what they want? I wish my subs would give me a price and then let me tell them what to do when I decide.

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Cal


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