whats the standard price markup on switchgear?

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charlie tuna

Senior Member
Location
Florida
emergency ordered 2500 amp switchgear- manufacturer stops normal orders and priority ships in two days (on dedicated truck) to the job site. switchgear price is probibly two to three times it's normal cost. lets say $110,000. this includes a 2500 amp vault stub. what would be the overhead and profit markup in your opinion???/
 
Re: whats the standard price markup on switchgear?

Depends on how you want to feel after the deal is done.

If it were me I would probably look at 15% at most on $110,000 including tax and handling.

If there are others quoting the job you should consider 10 to 12%


Roger
 
Re: whats the standard price markup on switchgear?

the insurance investigator is questioning my markup of 12 percent over cost. i don't think this is out of line............
 
Re: whats the standard price markup on switchgear?

Charlie, I think 12% is very fair, you are not taking advantage of anyone.

This insurance company simply thinks they are the only people that should make a buck.

I would stand tight at the 12%.

Roger
 
Re: whats the standard price markup on switchgear?

Charlie:

Just went through this, ask him their percentage of profit on customers?

I would have said 15%-20% plus tax and tell the insurance adjuster IF HE KNOWS SO DAMN MUCH ABOUT RUNNING A COMPANY WHY DOESN'T HE HAVE HIS OWN BUSINESS..


Depends on

Customer-Good or out of the blue.
Did other jobs suffer because of this emergency.
Was alot of overtime involved.
How much managenment time went into the job.
Can others in your area deliver the product, with the quality and in the time frame you did.

[ December 18, 2003, 12:38 PM: Message edited by: brian john ]
 
Re: whats the standard price markup on switchgear?

i spoke to the owner of the supply house and he said the proper markup would be 15% overhead - 5 % profit or greater and being it was an emergency repair it could be anywhere between 20 to 30 percent!!!! i wrote this restoration investigator a letter and told him i don't intend on changing my markup and that mark up would look like peanuts compaired to the markup restoration companies i have worked under added to my price---"shame on him"!
 
Re: whats the standard price markup on switchgear?

Did a job for a federal agency and they wanted to see my mark up 1t was 15% overhead 10 % profit.

He said his agency only allows 10 and 10, I said so don't accept my bid (we were sole sourced on this project). He asked if I could use a different line in trade service (which I do not subscribe too) and use a 5% mark up so he would not lose face to his fellow purchasing agents.

It is all a number game I believe my overhead and mark up are my business and hate to disclose, for fear others will find my secrete to bidding jobs. A LARGE DART BOARD 10 feet from my desk.
 
Re: whats the standard price markup on switchgear?

i am "hard core" when it comes to getting paid! my customers know it... i have not worked for a general contractor in ten years - direct for building owners and don't vary from that rule! the owners beg us to work for some g.c.'s - no way - we will work under them but get paid from the owner----the g.c.'s hate that arrangement...
over the years we have had to work under restoration companies and i have never been impressed with them or their dealings --- feel real strange with them watching my billing--like the wolf watching the hen house...and then they question a 12 per cent mark up!!! i think they are trying to justify their position and billing to the insurance company.... every day there's another lie at what is holding up payment. i had another emergency bus duct repair job that was a slow pay--- blew up on wednesday before thankgiving at noon - worked thanksgiving and had the power back on friday at noon. the thanks for providing excellant service- "no pay" --- gave them a dead line with a copy of the letter we intended to hand out to their tenants on monday morning as they came to work explaining our situation. they fed-x-ed my check on satruday !!! why does it have to get to that point??????
 
Re: whats the standard price markup on switchgear?

Charlie, best way I have found to handle an insurance adjustor is use the national insurance estimator book ,its similar to means and come in just below their price.Usally they dont fight if they do pull the book out,usally the books # is higher than mine anyway
 
Re: whats the standard price markup on switchgear?

cm
this job is not really complicated. the labor is on a t&m basis and the gear is all in one room. they can't argue the labor end - we had the building back in record time. the insurance company's investigator is just dragging his butt and uses a different reason - "were looking into" excuss for not approving the paper work. i know the gear price is high - sq-d had to stop production and send an eighteen wheeler special-drive straight through - priority one with the gear. another 1200 amp main has been discontinued,so they rigged a breaker into the existing can. the busing from the gear to the vault bus stub was bent on site to cut time at the factory....but who can say how much this is worth--- i can't! the comments out of their office are incompentant to say the least. the president has blamed these comments on his secretary and now denies saying anything. cna insurance isn't saying anything nor writing the check
 
Re: whats the standard price markup on switchgear?

Charlie:

Not knocking anyone; BUT..... GC's and engineering firms are the worst to get money from.

We here the same excuse from both, the project is not complete, (though our portion is) and they can't pay till the project is complete, or billed, or their waiting on something.........

We shy away from working from GC's for the reasons stated above; presently trying to get paid for a job we did 3 months ago. Original bid was for doing one type of testing, job expanded while we were on site and we were asked to complete a lot of extra work and supply extra equipment. The job cost went up and the GC says they have no problem with an increase but not the increase they received. Job was billed T&M and I was very nice with the rental equipment and hours, but he wants a reduction. T&M is T&M no way to reduce. Had I had time to bid the job the cost would have been at least 10 to 15 percent higher.

And as I’m not a bank I don’t want to loan money beyond 30 days into 90 now and will go on for sometime I’m sure.
 
Re: whats the standard price markup on switchgear?

ten years ago, or thereabouts, a trade magazine had an article predicting that eventually the g.c. will not be needed! customers will select a group of sub-contractors who "work together" to meet construction requirements. at that time i had just completed a two floor interior build out (price-waterhouse) for turner construction. the punch list was about 3/4" thick. the tenant was moved in and the g.c. had been paid for the job. i knew this to be the truth because we provide services to the building's owner. my job was complete- not one item on the punch list- not a lamp out of plate missing,etc.. i went to their comptroller - a women from n.y.. i asked her " i was wondering when our final draw will be issued"? it was 60 days past due and it was about $130,000.. she said "when the punch list is done"! i explained to her that i had zero items on the punch list. her comment was "if thats the case- you'll get paid when i f#%&ing feel like it"! i about feel over! i told her it would be the last job i ever did for turner construction and it was! six months later they couldn't find a contractor to bid their work.. now, they had hired paperhangers and painters who worked out of stationwagons - - and i'm gonna be waiting for them to complete their punch list holding up $130,000... i don't think so! thats how i got the idea to "not work for them" - and every once in a while i would do a small job and wam! same thing came back and bit me on the butt.. today, they get away with it - contractors except the fact that they are gonna kiss butt to get the money owed them, or like you mentioned payed at a reduced price. one s.o.b. actually had a policy with his superintendants - what ever money they could screw the subs out of would be a bonus for them at the end of the job. we were doing a 1/2 floor build out and the receptacle heigths in the core area didn't match those we had installed in the tenant space. every week the tenant would mention it and i gave them a price which i thought was right-- lowering outlets is expensive-you gotta repull the whole job... they never gave me the change order, but i made good money on this job and had some time between jobs, so i told my guys to go ahead and lower all the core recepticles-for free! six months later we were called to add some power outlets in the library. the same office manager who attended the jobsite meetings requested a "total price" on six outlets? i asked her to do it t&m? "no way" she said. "i remember what you charged me to lower those core recepticles"! i explained to her that we did not charge her for that work. she walked over and pulled out a invoice from the g.c. -- he took my price and doubled it!!!!!! then added ten and ten percent!!! blaimed the high cost on me!!
 
Re: whats the standard price markup on switchgear?

Where possible i have included a clause that so much was do on rough and bal on final COUNTY INSPECTION.The amount do was to be paid in 10 days or intrest @ ---%would be added.Should this remain unpaid after 90 days ,Lawyer fees will be added at there exspinse.Never had problem getting paid.If they won't sign this agreement then i rather not work for them.
Had a GC that was so good at paying that the ink wasn't dry on permit and he handed me my check.In return i gave the best service i could .
If GC's treat trades right they will usually get what they want and need.I do not want to be part of there company and wait till they get paid.When home buyer wanted extras i told them i only work for licensed GC and all extras go thru him.
 
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