Question

Your company is bidding on an office building. The estimated construction costs are as follows:

Labor = $985,466

Materials = $1,091,256

Equipment = $100,754

Subcontractor’s bids = $6,254,800

Your company marks up labor and materials 15%, equipment 20%, and subcontractor’s bids 4% to cover main-office overhead and profit. What is your company’s bid for the project?

Answer 1

Marked up price (M) = A x (1+ P%)

where A = actual cost

P = percentage mark up

Actual Labour Cost = 985466 $

Marked up Labour Cost (L) = 985466x(1+15/100)

= 1133285.9 $

Actual materials Cost = 1091256 $

Marked up materials Cost (M) = 1091256(1+15/100)

= 1254944.4 $

Actual equipment Cost = 100754 $

Marked up equipment Cost (E) = 100754x(1+20/100)

= 120904.8 $

Actual Subcontractor's Bids = 6254800 $

Marked up Subcontractor's Bids (S) = 6254800x(1+4/100)

= 6504992 $

Company's Bid for project = L + M + E + S

= 1133285.9 + 1254944.4 + 120904.8 + 6504992

= 9014127.1 $