Pricing the Bid

Welcome

Hello, and welcome. This is Super Structures General Contractors — a national general contractor headquartered in Powhatan, Virginia — here to help you and your clients build something that lasts. We're glad you're with us, and we look forward to connecting with you.

Let's dig into Pricing the Bid. Bottom line — write this one down: Build the price up — material, burdened labor, equipment, subs, overhead, profit — and never confuse markup with margin (20% markup ≠ 20% margin); add contingency for the risk you're taking on. Stick with me — by the end, this just clicks.

Turn quantities into a price that wins work and makes money — not one or the other.

Build the number up

1. Material — quantities × unit cost (get current supplier quotes).
2. Labor — hours × fully-burdened labor rate (wages + taxes + workers' comp + benefits).
3. Equipment — rental/ownership, fuel.
4. Subcontractors — their quotes, scope-checked.
5. Overhead — your business costs (office, insurance, truck, software) spread across jobs.
6. Profit — your margin for risk and reward.

Markup vs. margin (don't get this wrong)

A 20% markup on cost is only a ~16.7% margin of the sell price. To make 20% margin, divide cost by 0.80 (markup ≈ 25%). Mixing these up quietly erases profit.

Contingency

Add contingency for unknowns and risk (tight schedule, vague scope, new client). Price the risk you're taking, not just the materials.

Takeaway: Build the price up — material, burdened labor, equipment, subs, overhead, profit — and never confuse markup with margin (20% markup ≠ 20% margin); add contingency for the risk you're taking on.

Educational overview — bid requirements vary by owner and jurisdiction; always follow the specific invitation-to-bid and instructions to bidders.