Assume I bid a project at a specific sell price, and downstream I find additional costs that I did not count on. How will this affect GMP?
Peter Buitenhek Answer: The GMP would decrease by a calculated amount. If this difference is negligible or within tolerance, you may not need to worry. I always allow some product pricing or labor slop for that reason. If the variance is not within tolerance, management needs to be apprised immediately! However, if the bid is very competitive, extra pricing slop may put you over the winning bid so use caution.
