The Craftsman Book Company's cost databases do not include overhead and profit for the general contractor. Housing Rehab Pro NRI gives the user the option of setting this as a factor.
To change the Overhead/Profit percentage factor, from the “Main Menu” screen, click on the “Set” button under the “Overhead/Profit” box and select a different percentage from the drop down menu in the “Change Overhead/Profit Percentage” screen.
A 20% overhead and profit is the norm for general contractors in renovation work. For housing rehabilitation work, this percentage may be more or less depending on the size of the contractor, the total cost of the project, the particular market in which the work is performed, the project management skills provided by the entity bidding the work and the insurance/workers' compensation requirements of the bidding entity.
The preparation of a detailed work write-up and solid project management by the rehabilitation inspector may encourage contractors to bid rehabilitation projects more tightly.
HERE'S WHAT CRAFTSMAN HAS TO SAY ABOUT MARKUP
- "Prices in this book do not include markup. Insurance repair markup is almost always 20 percent: 10 percent for overhead and 10 percent for profit. In renovation work on historical structures, markup may be as high as 30 percent, although markup over 20 percent may be “hidden” inside the unit cost. Typical remodeling work markup varies from 15 percent to 25 percent. The most common markup for all types of work is 20 percent."
