Typical industry markup is what percentage?

The typical industry markup of 15% is considered standard within the construction industry due to various factors influencing project costs and the need for contractors to cover their overhead and profit margins effectively. This percentage allows contractors to account for direct costs associated with labor and materials, while also ensuring that indirect costs, including administrative expenses and business overhead, are adequately covered.

Marking up at 15% strikes a balance that is generally acceptable for clients while still providing contractors with a reasonable profit margin. It's important to note that while this figure is a common benchmark, actual markup percentages may vary based on project complexity, market conditions, and contractor experience. Understanding this common markup is key for contractors to remain competitive while maintaining profitability in their operations.