Scope and inputs to reconcile
Define whether markup applies to materials, labor, equipment, sub-tier work or a combined subtotal. Identify tax and overhead treatment to prevent duplicate additions.
Workflow and checks
Apply the contractual or contractor-supplied percentage to the correct base. For example, an illustrative $1,000 cost with 20% markup gives a $1,200 price and a 16.67% margin.
What the output should show
Show the base, applied percentage and resulting price for each affected cost category.
Exclusions and unresolved decisions
The illustrative calculation is not a recommended target or a claim about typical contractor profits. Contract limits on change-order markup require separate review.
Documents to share for a quote
Send the pricing instructions, cost backup and categories to which the percentage should apply.