Business Administration

Tag: How Much is a Fair Profit? Part III of V – Risk

Contractor’s Profitability

Jan 9, 2015

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by

David J Hoare MSA

in Construction Industry Standards

It costs a lot more than you realize to build a home or perform residential repairs. This article looks at both the homeowner’s and contractor’s perspective of what one perceives and the other actually incurs.
How Much is a Fair Profit? Part III of V – Risk

Mar 31, 2013

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by

David J Hoare MSA

in Business Principles Start-Up

A third factor in determining a fair profit percentage is risk. Risk is divided into two types. The first is insurable and the second is uninsurable risks. Insurable risks are mitigated and have very little to no effect on the profit formula due to transferring the risk to a third party known as the insurance underwriter. Uninsurable…