What do the rest of you handymen out here charge for mark-up on T&M jobs?
I’ve been charging 10% but was wondering if that’s too low.
I’m in the process of picking up some maintenance jobs as a outside contractor at one of the big corps. in my area, and this is one of the things they want to know, (along with what do i charge for overtime and hourly rate.)
I don’t want to go in at 10 while everyone else is 20 or 25, but I don’t want to price myself out either.
As for the HR I’m charging them 35 (which is their going rate) and as far as OT, I haven’t ever been charging any OT (and I do go out on Sat. And Sun sometimes). Or maybe the OT question was for contractors with employees. I work alone, generally b/c it’s easier to control the quality.
Dan
Replies
I'm guessing you're asking the markup on materials????
Under $50 it's 100%, it goes down from there but never below 25%.
10% doesn't cover the expense of billing and acounting for materials... at that price tell them to give you a credit card and they can deal with it.
Yes I was asking on materials.I've talked with some others who are doing work for them and they told me people are charging b/t 10 & 20 % so I put mine at 15. Thats 5 % better than I was charging.They also said the OT was typically for hours over 8 per day. So I did the std. 1.5 for Sats. and 2.0 for Sun. and holidays.Thanks, AllDan
36%. But what I charge for markup and what you require may very well be two entirely different things.
"I am the master of my fate, I am the captain of my soul." Invictus, by Henley.
1st....i don't like T&M... too hard to make money
too easy to have disgruntled customers
but when we do ,it's $50/hr/man & matls &subs x 1.25 ( 15% oh & 10% profit )
most ins. companies will accept that markup... so why would'nt a customer ?
$60.00 per hr. Plus I charge for my shopping time. Once I pull into the lumber yard parking lot my clock starts for the day. If I itemize a material list for my client, I can't charge them $20.00 for something EVERYONE knows costs $10.00, just doesn't sit right with me or them. It's costing them $1.00 per minute for me to shop. I do mostly handyman stuff, bathrooms, and the occasional kitchen. Have work right now into mid-November. I'm happy and things are simple, but I'll also have to work till I die.
You need to establish a OT rate for your bigger corporate customers, or else they will take advantage of you. You could say that OT starts at 50 hrs per week, and weekends & holidays, or whatever suits you.
"Put your creed in your deed." Emerson
"When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it." T. Roosevelt
Overtime is a slippery slope. I don't have much of a life outside work and can easily pack a 2 week job into 1.... 10 hours saturday and sunday an extra 4 per day and I'm living life large...
How about I worked 40 hours for someone else and the 10 hours I put in on your job is overtime????
Be very careful when dealing with "overtime" because it is easy to slip from being and independent contractor to an employee. I'd call it something like "emergency work" billed at X per hour.
Re: OT ... sounds like your normal OT is incidental stuff? If REQUIRED for a specific reason to get a job done ... then 1.5x ... Otherwise if you don't charge them they might be inclined to change their schedules willy nilly and have you work your fingers to the bone ... and you know what that gets you don't you?