Bid Situation 4

Reducing profit to become more competitive and still maintaining a secure job.

 Minimum risk and security 15%

 $28,402.00 labor x 15% risk = $4,260.00

 Material with sales tax $77,206.00

Labor with taxes and insurance $28,402.00

Job expense $2,863.00

Direct job costs $108,471.00

15% overhead 16,271.00

Contractor’s cost $124,742.00

Profit 4,260.00

Bid price $129,002.00