Hello, everyone.
This is Enta.
When you combine the head office and branch expenses of a major branch operator,
It's generally around 10% everywhere.
What I'm trying to say here is, are you factoring in the general contractor's expenses and profit when you prepare your estimate?
That's the thing.
The general contractor makes a profit, and the subcontractors do too.
For example, let's say the prime contractor's winning bid price is 90 percent.
If the first-tier subcontractor is a major company, the profit is 10% of branch expenses plus 5%.
That leaves 75%.
So, starting here, I'll first deduct my company's expenses and profits.
For example, let's say 7% is allocated to company expenses. If we want to achieve a 5% profit margin...
Can the construction be completed with the remaining 63%?
That's the thing.
Of course, this figure will vary depending on whether or not materials are included.
Calculate the cost of materials and determine the profit margin.
This mindset is essential for small and medium-sized independent contractors like me.
If you don't have a sense of what the cost is, it's going to be tough, isn't it?
But if you build up a fan base, this will become easier too, right?
I always want to go all out, both in terms of the budget and on-site operations.
See you later.
