How should I price subcontractor work on a customer job?

Start with the subcontractor's real cost

Use the expected subcontractor charge plus any permits, delivery, disposal or other direct costs tied to that portion of the work.

Account for your own time

Even when another company performs the field work, you may spend time finding the subcontractor, scheduling, reviewing scope, communicating with the customer, coordinating access, inspecting work and handling billing.

Do not rely on one universal markup

A percentage can be a useful pricing mechanism, but the correct amount depends on the job. A small subcontractor invoice that creates hours of coordination may need different treatment from a large, straightforward subcontract.

Clarify responsibility before quoting

Know who owns permits, cleanup, warranty issues, damage, schedule delays and change requests. If your company is responsible to the customer, that responsibility has economic value and risk.

Review the whole job, not one line item

After pricing subcontracted work, test the entire project against your productive-hour and profit targets. A marked-up subcontractor line does not guarantee the overall job works financially.