This is quite near the industry-standard "10 and 10," representing 10% for overhead and 10% for profit; using this example, your combined overhead and profit, also known as gross profit or margin, would amount to 20%.
When hiring a contractor, follow these checklist tips: Get multiple estimates, hire local and licensed contractors whenever possible, check their past work, take your time making a sound decision, verify their insurance and bonding, ensure everything is documented in writing, understand your right to cancel, and avoid paying up-front.
Ensure that every estimate encompasses essential elements, including a job description detailing the work, an overview of materials and labor with associated costs, the total project cost, and comprehensive sales and company contact information.
Furthermore, B2 contractors are restricted from extending electrical, plumbing, or HVAC systems, tasks permissible for B contractors, and the B2 classification mandates contracts involving three or more unrelated trades, in contrast to the B classification which allows for two or more.
To reduce personal risk, general contractors may opt to establish a limited liability company (LLC) or corporation, which are legally distinct entities from the business owner, thus safeguarding the owner's personal assets from the company's debts and legal matters in most situations.