Legal Question in Construction Law in California

I am a licensed contractor in California. All Commercial Projects. I hear that 10% is the best we can demand when working with either a General Contractor or Direct Customer. I noticed this in regards to residential but what applies to commercial projects?


Asked on 1/04/11, 6:43 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I assume you mean 10% profit. The question is, 10% on top of what? Many contractors bid at 10% over their costs, but the costs can include materials at retail, labor at $XXX per hour, etc., likely reflecting more than actual out-of-pocket costs. Successful bidding is an art. I'm guessing you haven't been in the commercial business long, or you'd have a feel for what the market will take. My advice is to tread lightly and bid on smaller projects until you gain more confidence. Better to lose a few bids than to be too low and lose a chunk of your capital.

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Answered on 1/09/11, 9:45 pm


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