Profit And Overhead?

Maderan

Wanted to see how it varried across the country and how I stack up.

Maderan

Trying to get an idea of what you guys get for profit and overhead in new construction and remodels. (GC's)

New Orleans market is about to explode and I will have the option of growing either side of the business (only do remodels now). Is it worth it to do new contruction as well?

Grumpy

You are asking what our markup is? As in %?

I'm not a builder, but I do consider myself to be a GC since I use almost all sub labor. I am very much a hybrid, but I aim for 30% on easy work. I think that's pretty typical.

Maderan

Yep thats what I am asking.

I aim for about 30% on a remodel (don't charge a mark up on the big ticket items appliances etc). What I want to know is what people are getting as GC or builders on new construction.

Bob Kovacs

You shouldn't be "aiming" for anything- you should know what your costs of doig business are, which will identify the overhead that you NEED to recover- not "aim" to recover. On top of that goes a "profit", which is not the same as overhead, nor is it the same as "owner's salary" (which should be part of overhead). That profit % should be a minimum of 8-10% if you truly want to grow a "business" and not just create a "job" for yourself.

Bob