does a builders markup commonly include overhead and profit only?
Answer Larry – I first assume that you are asking these questions as a project owner and not as a contractor. My answers will be based on that assumption. Unfortunately there is no reliable answer to your first question which would satisfy you that you are being charged a ‘reasonable’ markup. The selection of a markup figure by a contractor for any project tends to be more subjective than precise and is based on many variables. Typically, when qualified contractors quote a project, their fee or markup is always based on a thorough review of all of the conditions, characteristics and other special requirements necessary to complete the project in accordance with the contract documents governing its construction. It is just not possible, nor would it be fair to say that a builder should charge no more than, or no less than a certain percentage for overhead and profit on any type of project without doing a thorough review of the plans and specifications, visiting the site and evaluating a
