How Do You Handle Owner Provided Scopes Of Work

 
Thread Tools Search this Thread Display Modes
Old 02-17-2012, 02:44 PM   #1
Member
 
Shark49's Avatar
 
Trade: General Contractor
Join Date: Apr 2008
Location: Boone, NC
Posts: 32
Rewards Points: 25

How Do You Handle Owner Provided Scopes Of Work


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.
Shark49 is offline  

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   
 

Old 02-17-2012, 04:22 PM   #2
Commercial Contractor
 
Mud Master's Avatar
 
Trade: Commercial General Contractor
Join Date: Feb 2007
Location: Baltimore, MD
Posts: 2,025
Rewards Points: 1,000
Send a message via AIM to Mud Master

Re: How Do You Handle Owner Provided Scopes Of Work


Easy.

If I'm managing any aspect it gets marked up, usually 18%-20% of the TOTAL value,not individually. IOW, I take all sub cost and add my mark up, than all material cost and add my mark up. Slap on my managerial fee if its not cost plus and there's my price minus any in house labor.

__________________
Quote:
Originally Posted by katoman View Post
And when the day is done, I can look myself in the mirror, with pride, and say " you're a craftsman, well done. "
Mud Master is offline  
Old 02-17-2012, 04:36 PM   #3
Pro
 
Dan_Watson's Avatar
 
Trade: Remodeling Contractor/Helical Post Installer
Join Date: Mar 2008
Location: South Jersey
Posts: 2,462
Rewards Points: 1,544

Re: How Do You Handle Owner Provided Scopes Of Work


Different for every job we do. Some jobs get marked up on subs and materials, others get it a managerial fee. I never hide it.
Dan_Watson is offline  
Old 02-17-2012, 05:35 PM   #4
General Contractor
 
greg24k's Avatar
 
Trade: New Home Construction-Additions-Remodeling
Join Date: May 2007
Location: NJ
Posts: 5,126
Rewards Points: 2,498

Re: How Do You Handle Owner Provided Scopes Of Work


Are you a GC or GC "wannabe" who is looking to change or expand your trade field?

Before you ask this sorts of questions, you should fill in your location so people can give you a better advise based on the area you from.

With that said, I doubt you will get much advise how much you should mark up, that would be like asking how much I should charge... Best way to handle pricing and % of pricing is come up with a price that will work for you best in the area you're in.
Good luck
__________________
I never lost a cent on the jobs I didn't get!
greg24k is offline  
Old 02-17-2012, 06:08 PM   #5
Remodelingologist
 
EthanB's Avatar
 
Trade: Repair/Remodeling
Join Date: Sep 2011
Location: Rhode Island
Posts: 2,440
Rewards Points: 1,568

Re: How Do You Handle Owner Provided Scopes Of Work


I provide a single number in my proposals so the actual markup technique or percentage is irrelevant as far as the customer s concerned. I've found that people can be very touchy about extra charges when they are providing the material. Most of the time they're providing the material in an effort to lower the cost of the project.

As far as amounts go, I still factor in a time charge for materials if I'm going to have to participate in selection, ordering and pickup or if the materials they pick are going to require more labor on my part.

Rough example: painting a room
Sherwin Williams = $65 paint + trip to the store = $100
Behr = $50 paint + trip to HD + more prep and slower painting = $175

Extreme example but you get the picture. I had a storm door take 2 hours to assemble BEFORE installation last fall.
__________________
Quote:
Originally Posted by Jaws View Post
Planer.....
Here's how you figure your pricing L+M+O+P=Price
EthanB is offline  
Old 02-19-2012, 01:40 PM   #6
Member
 
Shark49's Avatar
 
Trade: General Contractor
Join Date: Apr 2008
Location: Boone, NC
Posts: 32
Rewards Points: 25

Re: How Do You Handle Owner Provided Scopes Of Work


Quote:
Originally Posted by EthanB View Post
I provide a single number in my proposals so the actual markup technique or percentage is irrelevant as far as the customer s concerned. I've found that people can be very touchy about extra charges when they are providing the material. Most of the time they're providing the material in an effort to lower the cost of the project.
I have actually mulled over doing this on my bids. I used to do a separate line item for Overhead and then Profit but often found myself having to explain these so started just putting a line item for "Fee" only. Same result less info. I've also done like you and have my markup already figured in a hidden column on right of my excel spreadsheets that only I see.
Shark49 is offline  
Old 02-19-2012, 02:54 PM   #7
Chris
 
PowerWash's Avatar
 
Trade: Pressure Washing
Join Date: Mar 2011
Location: Charleston, SC
Posts: 258
Rewards Points: 188

Re: How Do You Handle Owner Provided Scopes Of Work


Quote:
Originally Posted by Shark49 View Post
I have actually mulled over doing this on my bids. I used to do a separate line item for Overhead and then Profit but often found myself having to explain these so started just putting a line item for "Fee" only. Same result less info. I've also done like you and have my markup already figured in a hidden column on right of my excel spreadsheets that only I see.
I would be careful emailing spreasheet estimates to customers. You can look at all the "markups" if they are not locked. We had a secretary that was very savy when I was building houses. She found some good information from my siding and window guys spreadsheet estimates that they were emailing to me when I was questioning why their prices were rising so much. The first couple of houses had 20% mark-up on material last one had 45% mark-up on material. It was a well designed spreadsheet and I used some of it for myself later, but made sure to use spreadsheets in house only.
__________________
Pressure Washing Charleston SC - Pressure Washing Summerville SC Pressure Washing: Charleston, Summerville, West Ashley, Mt. Pleasant, Daniel Island, SC - Pressure Washing
PowerWash is offline  
Old 02-19-2012, 05:33 PM   #8
Member
 
Shark49's Avatar
 
Trade: General Contractor
Join Date: Apr 2008
Location: Boone, NC
Posts: 32
Rewards Points: 25

Re: How Do You Handle Owner Provided Scopes Of Work


Quote:
Originally Posted by PowerWash View Post
I would be careful emailing spreasheet estimates to customers. You can look at all the "markups" if they are not locked. We had a secretary that was very savy when I was building houses. She found some good information from my siding and window guys spreadsheet estimates that they were emailing to me when I was questioning why their prices were rising so much. The first couple of houses had 20% mark-up on material last one had 45% mark-up on material. It was a well designed spreadsheet and I used some of it for myself later, but made sure to use spreadsheets in house only.
I always convert it to a pdf first.
Shark49 is offline  
Old 02-19-2012, 08:52 PM   #9
Pro
 
RemodelGA's Avatar
 
Trade: Woodworker
Join Date: Nov 2009
Location: West Palm Beach, FL
Posts: 2,187
Rewards Points: 1,000

Re: How Do You Handle Owner Provided Scopes Of Work


Don't break out any of your markups on any quote. That will save you tons of hassle right there.

__________________
Flowery Branch, GA Home Remodeling
www.buildc3.com
RemodelGA is online now  


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Looking for work southern dutchess county NY "JJ" Help Wanted or Looking For Work 1 05-25-2010 01:03 PM
Help! Did Work But Not Paid! Appreciate Any Feedback... Amac General Discussion 11 12-04-2009 01:14 AM
Any Plumbers looking for work in Boston, MA area? sadegs Help Wanted or Looking For Work 2 02-20-2009 06:45 PM
Another silver lining in these dark clouds Mike Finley Business 0 04-02-2008 02:36 PM
forced insurance by owner - ccip nccontract2008 General Discussion 10 02-13-2008 09:09 PM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?