Hi All,
New member here trying to pick you're brains if possible.
Ive been in a position of pricing jobs for around a year or so now and would like to see how my fellow electricians compile there tenders when bid for the larger scale jobs for maim contractors.
At present i have always done it the same way which is how my boss has showed me by costing materials and marking them up by around 20% and then apply the labour charge rate (what we charge the client).
However, after talking with the md of a building firm we work with he has informed me of how he costs jobs, by pricing materials and labour at cost (what he pays) and then putting a percentage on top to cover overheads and profits.
My question is, are these the only ways to price a job and if we base it on the second theory how do you work out a percentage to cover overheads and profits per job when you never know how many jobs you will win thus taking the percentage higher or lower.
I hope my query is understandable! Thank you for you're time.
Nod
New member here trying to pick you're brains if possible.
Ive been in a position of pricing jobs for around a year or so now and would like to see how my fellow electricians compile there tenders when bid for the larger scale jobs for maim contractors.
At present i have always done it the same way which is how my boss has showed me by costing materials and marking them up by around 20% and then apply the labour charge rate (what we charge the client).
However, after talking with the md of a building firm we work with he has informed me of how he costs jobs, by pricing materials and labour at cost (what he pays) and then putting a percentage on top to cover overheads and profits.
My question is, are these the only ways to price a job and if we base it on the second theory how do you work out a percentage to cover overheads and profits per job when you never know how many jobs you will win thus taking the percentage higher or lower.
I hope my query is understandable! Thank you for you're time.
Nod