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Discussion Starter · #1 ·
Greetings, fellow contractors
I,m in the process of filling out a const. loan app. for a large remodeling job and I'm not sure how to add in my mark-up on the subs.

The bank writes a check for the portion of the job completed after I verify
Payment for the full amount. The invoice would show the actual cost of that portion of the job. Where do I plug in my mark -up ?

Appreciate any advice,
Thanks, Chris;)
 

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Greetings, fellow contractors
I,m in the process of filling out a const. loan app. for a large remodeling job and I'm not sure how to add in my mark-up on the subs.

The bank writes a check for the portion of the job completed after I verify
Payment for the full amount. The invoice would show the actual cost of that portion of the job. Where do I plug in my mark -up ?

Appreciate any advice,
Thanks, Chris;)
You don't have to submit invoices to the bank, that is between you and your contractor. What you need to do is break up the cost estimate, some will go by % and set up progress inspections to get a check.

i.e footing, foundation slab -$10k... after its done you call for bank inspection, they see its done, you get a check and you pay contractor what ever it is you owe.

Framing, sheeting, roof, windows,-50k...after its done you call for bank inspection, they see its done, you get a check and you pay contractor what ever it is you owe.
ETC.

With that said, don't forget to include your loan payroll, so if you know the job will last 4 months, you can add 1000- 2500 per week for your time to run the job and break it up into progress payments.

Good luck
 

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Discussion Starter · #3 ·
Thanks Greg,
Very helpfull, I guess I didn't understand the loan info. correctly. I'm thinking of adding in 15% to the loan for unforeseen rot damage and sill work, etc. does that seem like enough for overruns ?
 
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