Calculating Your Markup, Part 2
Note that costs listed in Get-A-Quote do not include the general contractor's markup. However, sections identified as "subcontract" include the subcontractor's markup. Here’s how to calculate markup:
Markup is $25,000 which is 25% of the total job costs ($100,000) but only 20% of the contract price ($25,000 divided by $125,000 is .20).
Here's an example using 19.87% markup on a larger commercial or industrial project:
The total job cost shown above includes work done with the general contractor’s crew and work done by subcontractor-specialists. Note that markup for this general contractor (overhead, including supervision expense, contingency and profit) is $2,480,000. This amounts to 24.8% of the total job costs but only 19.87% of the contract price (2,480,000 divided by 12,480,000 is 0.1987).