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Question DetailsAsked on 4/15/2016

can a business charge you a job profit fee

Can i be charged a job profit fee for some home improvement ?

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1 Answer


If on an hourly rate or such, it would include a profit - but if he quoted you a specific rate up front he cannot then add an additional profit on top of that.

If an estimate or bid, certainly it would include a profit of typically 10-15% - which might be separately listed, more often wrapped into his GAP (General, Administrative and Profit) markup which might apply to everything at say around 20-50%, more commonly applied only to labor at commonly 40-100% markup with a separate and different (lower) handling fee and profit on materials and subcontractors of typically 10-25% combined.

Answered 4 years ago by LCD

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