I started to ask this in another thread but figured best I start my Own:
I have a question concerning markup on kitchen cabinets, granite, or other scopes of work not contracted directly through you. I have a business relationship with a cabinet company that always refers me as the "go to" contractor when remodeling etc. As a GC you obviously have to spend time scheduling the cabinets and the periphery subs around them so your time is worth money. So how do you handle markup of the cabinet package if the Owner/client pays them directly? Some people "hide" the costs in other scopes of work based on the amount of time they are involved. Some put a "supervision" line item or simply put in their contract a 10% markup on all scopes not directly contracted through the GC. I realize there is not perfect or set way just curious how you handle it. And yes I know that you have to figure out the exact modifier value yourself based on your companies needs etc. etc. I want to know if you markup your scopes say 20% how much do you markup Owner provided scopes if at all? Some guys also use disclaimers and contract boiler plate, if you do please explain.
I have a question concerning markup on kitchen cabinets, granite, or other scopes of work not contracted directly through you. I have a business relationship with a cabinet company that always refers me as the "go to" contractor when remodeling etc. As a GC you obviously have to spend time scheduling the cabinets and the periphery subs around them so your time is worth money. So how do you handle markup of the cabinet package if the Owner/client pays them directly? Some people "hide" the costs in other scopes of work based on the amount of time they are involved. Some put a "supervision" line item or simply put in their contract a 10% markup on all scopes not directly contracted through the GC. I realize there is not perfect or set way just curious how you handle it. And yes I know that you have to figure out the exact modifier value yourself based on your companies needs etc. etc. I want to know if you markup your scopes say 20% how much do you markup Owner provided scopes if at all? Some guys also use disclaimers and contract boiler plate, if you do please explain.