As a relatively inexperienced estimator I would like to know how common a practice it is for estimators to add J/B [just because ]or is it J/P [job profit ] at the end of a estimate. If this is a common practice what would be a fair mark up ??????
I think it is absolutely necessary to put a overall profit markup at the end of a bid. This is the money that can be put back into the business or that goes directly into the pocket of the owner. I tend to increase my proposals by 15% to 25% over the labor and material costs. (Labor x hours + materials / .6 + 15% to 25%)
You should definately have overhead and profit on material. It cost you time you could have been on a job making money to go get the material, right?
A good fair rate for OH and profit on material is 20%.
Your labor estimate on the otherhand should not have profit tacked on at the end. Your labor rate should already have OH and profit built into it. If you are worried your time estimates are off, then add a 20% contingency on your time estimate.