Pricing Your Subcontract Work for Profit

Know Your Costs

Accurate pricing starts with understanding your true costs. Many subs underprice because they don't account for all expenses.

Direct Costs

• Labor (including burden)
• Materials
• Equipment
• Subcontracted work

Indirect Costs

• Insurance
• Vehicles and fuel
• Tools and equipment maintenance
• Office and administrative
• Estimating and marketing

Calculating Your Rates

1. Calculate your annual overhead costs
2. Determine your billable hours/revenue
3. Calculate overhead percentage
4. Add profit margin (typically 10-20%)

Competitive Analysis

Use Bidroom's AI tools to understand market rates and ensure your pricing is competitive while maintaining margins.

When to Say No

Some projects aren't worth taking. Know your minimum margins and walk away from unprofitable work.