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Markup for Sub-Contractors

Discussion in 'Hardscaping' started by JimLewis, Dec 31, 2013.

  1. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,839

    Just curious. How much do you guys generally mark up work that was done by a sub-contractor. If you don't ever use subs for anything, fine. I guess this question is for someone else. But we use subs for things like line-voltage electrical work, gas lines, larger scale carpentry, complex decking, and some stone masonry work. I wanted to compare notes a little and see what others were marking this up when you do it as part of a larger outdoor living space job.
  2. OSdb

    OSdb LawnSite Member
    Posts: 76

    I don't have a set number or percentage on top of what they charge but normally I base it off of how much I will be involved with overseeing them. Some trades I work with regularly and know that they will do what I expect with minimal supervision so I price it accordingly. Also if I really want the project I will sometimes add very little to help secure the project.
  3. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,985

    Im solo, but when I was working in the building industry we would give a bid and if we got a job we couldn't handle we would take bids and pocket the difference.

    If your only subbing out part of the job 20% mark up, not profit margin, would be fair. If you use small companies the sky is the limit. Take in account your responsible for their work, and you will get the call back and law suite.

    Construction has alaways been a cutthroat business.
  4. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,417

    cripes it New years eve :dancing:

    ta hell with mark up percentage :hammerhead:

    Lets focus on drink mix percentages :drinkup:
  5. SRT8

    SRT8 LawnSite Bronze Member
    from CA
    Posts: 1,294

    We sub out work for:
    -tree work
    -gutter cleaning
    -window cleaning
    -concrete finishing on big jobs
    -trucking and large excavations

    Having a good relationship with my subs has made all the difference as well as throwing a lot of work their way. We sub out about $250k of tree work annually and thats where we have been able to mark up the price the most. We mark up everything at least 20% but with tree work we try to get away with 30% .
    Posted via Mobile Device

    Posts: 1,343

    I like this better!

    But to answer the question it really depends on the project and customer.
    Complexity and customer expectations will normally dictate % added.
    Posted via Mobile Device
  7. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,417

    not a one answer answer, jimmy.

    if I want the job something fierce and don't wanna risk losing it, heck, maybe 5-10%.

    If I don't care bout the job, money grows on trees, yadda yadda yadda, maybe 20%. Yabba dabba doo.

    hope this helps ya jimmy :drinkup:
  8. Drakeslayer

    Drakeslayer LawnSite Member
    Posts: 137

    Take your subs numbers and divide it by .8. That will get you close.
  9. AintNoFun

    AintNoFun LawnSite Bronze Member
    Posts: 1,807

    20% - 10% for oh and 10 for profit
  10. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    We sub out a good amount of work and almost all of our subs give us a significant discount on the jobs. We mark the cost back up to what the client would pay if the hired the contractor directly then usually added another 5-15% ontop of the retail price. A lot of it depends on what we have to do as well. If it's a contractor who I can give the specs to and they just show up then I'll charge less than if it is someone I have to supervise. Then if we have to do any work, I add our labor rate on, for example often with deck construction we will dig and pour the footings remove the previous existing decks.

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