hey guys new to the forums but not the field. my father owns a company and i recently joined him as an employee (electrician/estimator/etc). we're trying to expand and grow. most of our bid jobs seem to be from couple thousand to 50k.
my question is: how do you guys do it? what's your method? i've come across two ways.
OptionA:
once i find out how many hours the job will take i multiply that by a "rate" comprised of overhead (for the time of job)/wage/tax/profit (i think 5%) then take material and then over the total place a blanket mark-up 5-10%.
OptionB:
once i find out how many hours the job will take i multiply that by the highest paid employee's wage. ontop of that add tax on top of that add overhead for the time frame. ontop of that add the materials. then take the total and blanket it with a larger profit% (10-25%)
we've been pretty close using the first technique, but i think all the larger companies in the area use the latter of the 2. or somthing similar to it. just trying to get as competitive as possible.
also another question how do you guys handle estimating a prevailing wage job?
