Overhead and Profit on Change Orders
You shouldn’t sign a contract that stipulates what you can charge, even if it’s just on the change orders.
You shouldn’t sign a contract that stipulates what you can charge, even if it’s just on the change orders.
I’ve seen contractors try to apportion overhead on a daily, weekly, monthly or per job basis when compiling their estimates. I don’t recommend any of those approaches.
Adding overhead and profit to job costs to calculate sales price is a mistake. Contractors should use a markup calculated for their construction business.
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