Subcontractor Markup Tool
When a sub bills you, you aren't just passing the cost along. You're managing, scheduling, and warrantying their work. Use this tool to ensure you're paid for that responsibility.
Strategic Sub Markup
Worked examples: marking up a $5,000 subcontractor quote
What you charge the client, and what you keep, at four common markup levels on the same sub quote.
| Markup level | Sub quote | Markup | Price to client | Your margin |
|---|---|---|---|---|
| 10% markup | $5,000 | 10% | $5,500 | $500 |
| 15% markup | $5,000 | 15% | $5,750 | $750 |
| 20% markup | $5,000 | 20% | $6,000 | $1,000 |
| 25% markup | $5,000 | 25% | $6,250 | $1,250 |
Markup on subs covers your supervision, scheduling, warranty exposure, and the cost of carrying their invoice until the client pays. It is not a surcharge — it is the price of managing the trade.
Why Mark Up Subcontractors?
General Contractors often struggle with whether to mark up their subs. Remember that once a sub is on your job site, you are responsible for:
- Site Management: Coordinating schedules and site access.
- Quality Control: Ensuring their work meets your high standards.
- Liability: You carry the insurance and the warranty for the entire project.
- Payment Risk: You are often paying the sub before the client pays you.
Industry Standard Sub Markups
While every job is different, most professional GCs aim for these markup ranges on subcontractor labor and materials:
- Volume Builders: 10% - 15%
- Custom Remodelers: 20% - 35%
- Specialty GCs: 40%+ (If providing significant design/planning)
Stop losing money to uncaught cost overruns.
Track labor burden, collect mobile change order signatures, and see your live profit margin on every job — starting today.
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