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When you do a cost plus job, do you do a margin or a markup? We've done both and sometimes we specify this in the contract, but what is the generally accepted way of doing this and how do you do this?
 

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When you do a cost plus job, do you do a margin or a markup? We've done both and sometimes we specify this in the contract, but what is the generally accepted way of doing this and how do you do this?
huh? I'd take the cost and add something to it...
 

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IIRC, Margin for 25% would be 100/.75 = 133.00, Markup would be 100x1.25= 125.00.

I prefer Margin.
 

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I do markup because it's easier to explain to the clients.
You explain your oh/profit?? ME...Lump sum baby...you don't like it go with the low baller and learn the painful lesson so many H.O.'s will never make twice...in the end you'll wish you hired me because my final invoice will most likely be what I bid and have a warranty with credibility can't say the same for the others.
 

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You explain your oh/profit?? ME...Lump sum baby...you don't like it go with the low baller and learn the painful lesson so many H.O.'s will never make twice...in the end you'll wish you hired me because my final invoice will most likely be what I bid and have a warranty with credibility can't say the same for the others.
OP was referring to a cost plus job. You have to explain your "plus" part to the HO. And unless someone is familiar with the difference in markup and margin, I find that it's easier to explain markup.
 
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