Well, i was a piece worker before for drywall. Now i got into subcontracting for GC's for drywall. Well, I have about 4 estimators/project managers working for me. 2 still learning and two who have experience. Now one of the estimators has been telling me how to run the business, but i think he might be wrong and making me lose money. I pay 2 estimators a salary they demanded to work for me, which is a salary of 4,000 every two weeks. One estimator who is still learning and has gotten a few projects for me earns 2,000 every two weeks, the other under 2,000.
For projects i pay them a percentage of total amount left. Lets say a project contract was for 70,000.00 and after it ends we spent 55,000.00 on material and labor used on the project. so they get 2% from 15,000. Now i think ther eis somethign wrong with the way they are making me do this. Because they consider the profit what is left from the contract. Should i first deduct a % for expenses and overhead before deciding what the profit is? BEcause for what i am paying them they have only gotten about 7 projects under 80.000.00.
Please give me advice on how to make up for the salaries iam paying them and espenses. Do i deduct something on salaries from projects? how do you guys make up for salaries payed to your estimator/project managers. Especially if they want to go on vacation like 3 times a year for over a two weeks and still want to be paid?
I talked to my son who is still in college and he said i should do this. Tell me if this is correct and if i should implement to my company asap. COrrect it please.
I am going to pass this out to my estimators this monday, please correct or add anything missing. I dont want them to tell me i am wrong and to argue with me.
"Overhead: deducted from total contract amount
Small Project: 10% ($0.00 to $99,999.00)
Medium Project: 20% (100,000.00 to 499,999.00)
Large Project: 30%: (500,000.00 and up)
Tax/Burden: 10% of project contract amount. (Added to percentage of overhead)
-----After overhead and tax/burden deductions, your project can be evaluated to see if there was any profit or loss. -------
Profit: Profit for company and project manager, if any, to be determine after overhead and tax/burden.
Project Manager 0-2% from total profit, if any.
Notes:
Overhead: Refers to operating expenses to run the company. Overhead is applied as a percentage to total costs (material, labor, indirect costs, sales tax, ect.) This helps cover office cost, PM salaries for managing project, accounting services, heating/cooling, ect.). Overhead might run from as low as 10% to more than 25% or more depending on project and office cost.
Tax/Burden: Refers to sales tax on material, fees, insurance on labor, social security, workers comp ect.
Profit: Profit brought in by a certain project after overhead and burden. "
This is what i have so far. so do i deduct all of this before determening what the profit is? are my % correct, what are the average % for markups? Please HELp!!!!
For projects i pay them a percentage of total amount left. Lets say a project contract was for 70,000.00 and after it ends we spent 55,000.00 on material and labor used on the project. so they get 2% from 15,000. Now i think ther eis somethign wrong with the way they are making me do this. Because they consider the profit what is left from the contract. Should i first deduct a % for expenses and overhead before deciding what the profit is? BEcause for what i am paying them they have only gotten about 7 projects under 80.000.00.
Please give me advice on how to make up for the salaries iam paying them and espenses. Do i deduct something on salaries from projects? how do you guys make up for salaries payed to your estimator/project managers. Especially if they want to go on vacation like 3 times a year for over a two weeks and still want to be paid?
I talked to my son who is still in college and he said i should do this. Tell me if this is correct and if i should implement to my company asap. COrrect it please.
I am going to pass this out to my estimators this monday, please correct or add anything missing. I dont want them to tell me i am wrong and to argue with me.
"Overhead: deducted from total contract amount
Small Project: 10% ($0.00 to $99,999.00)
Medium Project: 20% (100,000.00 to 499,999.00)
Large Project: 30%: (500,000.00 and up)
Tax/Burden: 10% of project contract amount. (Added to percentage of overhead)
-----After overhead and tax/burden deductions, your project can be evaluated to see if there was any profit or loss. -------
Profit: Profit for company and project manager, if any, to be determine after overhead and tax/burden.
Project Manager 0-2% from total profit, if any.
Notes:
Overhead: Refers to operating expenses to run the company. Overhead is applied as a percentage to total costs (material, labor, indirect costs, sales tax, ect.) This helps cover office cost, PM salaries for managing project, accounting services, heating/cooling, ect.). Overhead might run from as low as 10% to more than 25% or more depending on project and office cost.
Tax/Burden: Refers to sales tax on material, fees, insurance on labor, social security, workers comp ect.
Profit: Profit brought in by a certain project after overhead and burden. "
This is what i have so far. so do i deduct all of this before determening what the profit is? are my % correct, what are the average % for markups? Please HELp!!!!