Your company marks up labor and materials 15 percent, equipment 20 percent, and subcontractor’s bids 4 percent to cover main-office overhead and profit. What is your company’s bid for the project?
Your company is bidding on an office building. The estimated construction costs are as follows:
Labor = $985,466
Materials = $1,091,256
Equipment = $100,754
Subcontractor’s bids = $6,254,800
The bid is calculated as follows:
Labor = $985,466 × 1.15 = $1,133,286
Materials = $1,091,256 × 1.15 = $1,254,944
Equipment = $100,754 × 1.20 = $120,905
Subcontractor = $6,254,800 × 1.04 = $6,504,992
Total = $1,133,286 + $1,254,944 + $120,905 + $6,504,992 = $9,014,127
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