Why do contractor’s charge overhead on materials?

            Do you go into a grocery store and declare you pay only the cost that the grocer pays?  NO.  He has a lot of expenses, like the utilities, the building, the advertising, the cleaning etc. not even to mention taxes, worker’s comp and insurance.

            So why do you ask contractors?  Not to mention, as a contractor we can typically purchase items for less than Joe public because of the quantity that we purchase.  So on some items you may still be paying less than what you can buy it for.

            I have had clients forbid any overhead or mark-up.  In those cases I have either denied the job or increased my wages to compensate.  A well established contractor knows what he has to clear to stay in the business, and hence he has to make it somewhere.

            And don’t bother a contractor by purchasing material yourself to save money.  In the end you are paying for it somewhere.

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