subcontractor markup?

Hack Attack

Member
Joined
Dec 19, 2017
Messages
3,933
Location
further south than you
Name
Dan
Got a small commercial complex that I do quarry tiles in once a fortnight

It recently had a fire and I did resto work on a couple of the businesses

because I have a relationship with the complex owners and the loss adjuster. I've been asked to subcontract a pressure washing company to clean smoke damage off outside of building and awnings

What markup or margin would you put on his quote? I spent an hr onsite discussing scope of works today.
 

Hack Attack

Member
Joined
Dec 19, 2017
Messages
3,933
Location
further south than you
Name
Dan
I was thinking 15-20% originally as starting point

But he says it will take 2 of his guys 4-5 days

My original eyeball guess was 2 guys 3 days? admittedly never done any commercial work needing scissor lifts, safety barriers, catchment etc
 

Fat Mike

Member
Joined
Aug 1, 2017
Messages
1,999
Location
AZ
Name
Mike G
Typical is 20% and most insurance accounts for 10% profit and 10%overhead

But be careful by subbing you’ve become a General Contractor and assume the liabilities of said sub contractor. At least that’s the way it works in the state I live.

So yer gonna wanna get the guys license Info and insurance Imo
 

The Great Oz

Member
Joined
Nov 25, 2006
Messages
4,295
Location
seattle
Name
bryan
20% usually pays for your costs to run billing through your company. If your want to make money for taking your time, and adding the responsibility of managing the sub, add more.
 
  • Like
Reactions: Hack Attack

Acp

Member
Joined
May 15, 2017
Messages
1,046
Location
Seattle
Name
Bjorn Marshall
we do 20% on all our exterior services.. pressure washing, roof soft washing, siding, gutters, windows.

Some high end homes I will go 25% because I know they are happy to pay it.

sub contracting is awsome.... if your already established as a carpet/tile cleaning company it is so easy to expand into exterior and utilize your existing clientele. The tickets are pretty big, I highly recommend it.
 
  • Like
Reactions: Hack Attack

Jimmy L

Member
Joined
Oct 7, 2006
Messages
13,807
Location
Ne
Name
Jimmy L
Without any liability can you just get a "Finders fee" from the contractor?
 
  • Like
Reactions: roro

Latest posts

Top Bottom