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Old 12-26-2010, 06:18 PM   #1
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cost breakdown: materials, labor, profit


What is a general breakdown of the cost of a house, looking at materials, labor, and profit? Ignore the land, septic and site preparation. 40-40-20 per cent about right?

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Old 12-26-2010, 06:32 PM   #2
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cost breakdown: materials, labor, profit


25-25-25-25

Materials, Labor, Profit, Overhead.

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Old 12-26-2010, 11:38 PM   #3
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cost breakdown: materials, labor, profit


Thanks. I never thought about overhead. I should also add that this would be for a slab on grade, 4' foundation wall down to footer, ranch style, super-insulated, no exotic architecture, etc. Pretty plain, L-shaped box, flat ceiling, cold attic.
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Old 12-26-2010, 11:41 PM   #4
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cost breakdown: materials, labor, profit


25% overhead? You need to trim the office staff.

and 25% profit? Um, sure.
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Old 12-27-2010, 09:21 AM   #5
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cost breakdown: materials, labor, profit


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Originally Posted by nap View Post
25% overhead? You need to trim the office staff.

and 25% profit? Um, sure.
Do you think it really costs $300 to make a PS3? Or $1000 to make a laptop? Probably not. It's called business. If you aren't making O&P, you won't last long.

jklingel, it really doesn't matter what the house is, as far as percentages go. Prices usually go up for most guys who have someone looking over their shoulder every step though. Just sayin
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Old 12-27-2010, 10:20 AM   #6
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cost breakdown: materials, labor, profit


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Originally Posted by MJW View Post
Do you think it really costs $300 to make a PS3? Or $1000 to make a laptop? Probably not. It's called business. If you aren't making O&P, you won't last long.

jklingel, it really doesn't matter what the house is, as far as percentages go. Prices usually go up for most guys who have someone looking over their shoulder every step though. Just sayin
we're talking about construction here, not making a video game. There is a huge difference in profit margins in the two different areas. Dang, if you want to pull numbers from another area, use shoes. Shoes used to run a 200-300% mark up. Don't know what they are anymore but it's irrelevant. It's not building houses either.

I can't give you the general construction numbers with any accuracy but I can give you numbers for electrical contracting and they aren't anywhere close to the 25% overhead and 25% profit. Construction business just don't run with numbers like that.
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Old 12-27-2010, 02:17 PM   #7
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cost breakdown: materials, labor, profit


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Originally Posted by nap View Post
we're talking about construction here, not making a video game. There is a huge difference in profit margins in the two different areas. Dang, if you want to pull numbers from another area, use shoes. Shoes used to run a 200-300% mark up. Don't know what they are anymore but it's irrelevant. It's not building houses either.

I can't give you the general construction numbers with any accuracy but I can give you numbers for electrical contracting and they aren't anywhere close to the 25% overhead and 25% profit. Construction business just don't run with numbers like that.
You're right. Not any more. It's more like 33 labor 33 materials 33 O&P. Then again, I don't see many Contractors with a retirement like the rest of the employment in other fields. We are just cutting our throats to satisfy the yuppies who think they need everything as cheap as possible. BUT at their job, they want the highest wages and benefits. Sad, but true.

Very few companies have actual overhead that is really significant. We have more money in equipment than our personal homes and we are only two people. We can do jobs that most people can't and our equipment doesn't need any sick days.

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