The answer is not as simple as a fixed number… licensed and insured legitimate firms need to make at least a 10% mark up for overhead expenses and a minimum of 10% for profit. We generally do most larger projects at cost plus. All wholesale costs of all materials and sub-contractors if any, along with 22.5% for overhead and profit… An example for a $100,000 project we really only end up making approx. $8,500 after taxes. Certainly that is very fair. This is why we have an A rating with BBB and many repeat clients. If you have any questions please don’t hesitate to contact us directly, customer service and high quality workmanship are what we are known for. Jeffrey Schwartz at JS Construction 2 LLC, Miami, Florida.
Construction Companies that are following all state and federal requirments need to charge these fees, associated with finding the correct products, securing them, and getting them to the job site, the 12% - 15% profit will cover the expense of providing the owner with quailfied companies, truck expense fuel, maintenance, office managment and office expense, extra tax forms required, bonding fees, insuance cost all come from these fee, the difference between our cost and let say a retail store ours are calculated on cost and size of the project. If you would have question relating to this topic or others please contact us.