Forum Discussion

Vermillion's avatar
Vermillion
Contributor 2
3 months ago

Pricing bids to builders as a sub

Hey everyone, my company is new. I run a carpentry business in SE Mi focused on doing high end work when I can get it. I'm having several struggles and dilemmas but, what I'm wondering is do people who work as subs markup material when they give their price to the builder? I know people do this when they work directly with the homeowner, so I'm wondering should my pricing change in any way when going through a builder? I also have been charging an additional percentage at the end of my bid when I have labor and materials calculated in order to make a profit for the company

5 Replies

  • ryaantuttle's avatar
    ryaantuttle
    Jobber Ambassador
    3 months ago

    Yes. Everything should be marked-up in order to keep your lights on. That would be all labor, materials, disposal and travel/gas if need be.

  • AdamP's avatar
    AdamP
    Contributor 2
    3 months ago

    Is the GC providing the materials?  If you are providing the materials, no different than a homeowner.  Especially when you have to buy the spec items off the list of the architect.  Don't let them get away with a change order and not having a change in the contract.  Remember the scope of work will list everything you have to do, any change ---change order

  • Sahm1869's avatar
    Sahm1869
    Contributor 2
    3 months ago

    Most jobs i bid on no matter who is it for. Price of materials double that and add your percentage that's typically the price for the whole job. If not and you need more for labor add it. But always a percentage at the end of your total. Just to cover the unforseen. 

  • KremersRepair's avatar
    KremersRepair
    Contributor 2
    2 months ago

    I agree with the others, my general thumb is parts + 30% and labor,  I tell the customers that they can purchase the materials or i can  (then I would add the percentage + gas mileage if more then 15 miles)You have to always remembers if you do high quality work, you should be more then the guy down the street!

  • EnergizeUs's avatar
    EnergizeUs
    Contributor 5
    11 days ago

    Absolutely, your pricing should change depending on1. They’re looking for a sub they can throw on the schedule and not babysit. That means:
    * They expect tighter numbers.
    * They expect fewer change orders.
    * And they’ll compare your bid to the last 3 guys they used.
    So yes, mark up your material,  maybe not as aggressively as you would for a homeowner, but enough to:
    * Cover your time sourcing,
    * Cover risk (returns, damage, delays),
    * And actually make it worth doing.
    Even 10–15% is fair if you’re managing the materials.
    2. Don’t let the builder dictate what your profit should be.
If you’re doing labor + material, yes, add a margin. That’s not greed. That’s sustainability.
    Just be clear and consistent in how you show it:
    * Some guys bake it all into the line items.
    * Others break out a line for “overhead & profit.”
    Either way, don’t apologize for it.