Easily Replace Calculations from the General Contract

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How to Replace Calculations from the General Contract

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all right so i think theres a couple things we can go over about uh charging for estimates and uh its definitely uh you know in the groups on facebook and stuff theres a lot of guys that have some serious um issues with it but like the thumbnail says i mean i asked what we do im going to tell you my best practices and things to expect if you charge for estimates so lets get into it [Music] [Music] all right guys so i just collected an estimate uh fee for a customer a thousand dollars for the estimate itself and um youve probably seen a thumbnail or what however well ill throw a picture of it in here theres a couple things all right were going to get into it estimate versus a quote so i know a couple people like i actually post in the group and everybodys like well what about a quote et cetera et cetera um so i think a quote is more along in the lines of an accurate you know what it takes to get the job done and estimate is like a ballpark like thats how they describe it to m

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Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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What is RCV and ACV on insurance claim?

Usually, you have to pay part of the cost yourself. That amount is called the deductible. After that, how much money you get from the insurance company depends on if the coverages you purchased pay replacement cost value (RCV) or actual cash value (ACV).

Is profit allowed on GA?

GA gets indirectly paid under the charge for labor. No profit or GA can be added to Travel either, which is actually considered a type of Material for reimbursement purposes. So you dont add GA expense directly to the offer. It is already included in the proposed labor rates.

What percentage do most general contractors charge?

Average General Contractor Rates General contractors charge at about 10 to 20 percent of the total construction project cost. For even larger projects, you might pay closer to the 25 percent mark for professional construction services.

What are the 4 types of profit?

What are the different types of profit? Gross profit. Gross profit is the amount of money remaining after subtracting the cost of goods sold (COGS) from the total income from sales. Operating profit. Operating profit includes both variable and fixed costs. Pre-tax profit. Net profit. Net profit margin. Reduce costs.

Can profit be on minus?

Gross profit margin can turn negative when the costs of production exceed total sales. A negative margin can be an indication of a companys inability to control costs.

How do you classify profit?

There are three main measures of profit. These are gross profit, operating profit and net profit.

What is typical markup for general contractor?

Most general contractors are looking at about a 35% margin, so they need a markup of 54%, or 1.54. Subs can often get a profit margin of 50%, so they need a markup of 100% or 2x, as shown in the table on the right. For some contractors, they have 35% gross profit and 25% goes to overhead and 10% is left in the company.

How much profit margin is allowed?

But in general, a healthy profit margin for a small business tends to range anywhere between 7% to 10%. Keep in mind, though, that certain businesses may see lower margins, such as retail or food-related companies. Thats because they tend to have higher overhead costs.

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