Contractor bidding cost

Contractor bidding cost

Member since 2019 · 1 post · 1 vote

We are redoing our kitchen, and lets say the cost is 60K+ 12K profit/Overhead (20%), includes cabinets, countertops, etc.

Why do contractors calculate profit based on total cost including materials. If I chose a 40$ per square foot granite vs.

an $80 per square foot granite why should the contractor make more money just because I picked out a more expensive piece of

granite. That does not seem right, they are not doing any more work. The profit cost should be fixed for a project and not

based on material cost. Otherwise I as the consumer am getting screwed because I choose a better material.

Any thoughts would be appreciated

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  • Real Estate Investor · Hallstead, PA · Member since 2013 · 45 posts · 24 votes
    7y

    I have 30 years remodeling experience and without getting into all the details about risk, liability, overhead, margins and profit let me just say this; Lowes, Home Depot, McDonalds, etc. all have a set profit they charge. No one never think twice about this, we just pay the asking price and walk out the door. 

  • Contractor · phoenix arizona · Member since 2019 · 7 posts · 5 votes
    7y

    Here in phx we give out two separate bids or ask before hand about the materials. We usually do one bid with only labor, that way if the owner decides on different materials the price won't fluctuate. I don't believe we should rip off a client just for a little extra.

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