Material with sales tax $77,206.00
Labor with taxes and insurance $28,402.00
Job expense $2,863.00
Direct job costs $108,471.00
15% overhead 16,271.00
Contractor’s cost $124,742.00
5% profit 6,237.00
Bid price $130,797.00
$6,237.00 profit divided by
$28,402.00 labor dollars = 22% risk and security
• Profit will secure a 22% labor overrun.