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 risks are non-transferrable and therefore the profit must be adjusted to compensate for this type of risk.
I’m surprised at how many visitors to this section of the website are oriented to what is a fair profit for a contractor. I’m not referring to the industrial or the commercial contractor; I’m referring […]