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Understanding Labor-Only Estimates

Learn why a reasonable percentage profit margin related to the risks being taken should always be included.

Electrical contractors are sometimes asked to provide “labor-only” installations from a customer or potential customer. The idea is that the client will provide the materials/electrical equipment, and the contractor will provide the manpower. The client thinks the labor costs from the contractor are based on the hourly wages of the workers installing the materials. However, if you take on a project using this approach, you won’t be profitable.

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