your cost plus, are you charging a percentage on top of your self-formed labor?

I said, we are.

They're like, so are you marking up your labor?

I said, we are.

So you're double dipping.

I said, well, if that's the way you want to describe it, the client said well I don't want to pay double markup on your labor I said hey we can approach this job differently I can subcontract all of the carpentry out and that way you're not paying a double markup on the labor.

They're like, well, what's the subcontractor labor rate?

It's like, well, it's actually, you know, the exact same as what we're billing. What's up guys? It is Nick. I want to talk about Labor Burden. I do a lot of these consulting

calls with you guys. I talk to at least one of you guys a week.

If you guys want to schedule that Nick Schiffer.com forward slash booking.

But one of the things that comes up a ton is understanding costs and specific to labor.

And there's a couple things, whether you're a fixed cost or cost plus, it really doesn't matter.

But you really need to understand the true burden of labor.

And you know with that being said you know let's let's back up and think about when you are pricing

work there's material costs,

there's subcontractor costs, and there is labor costs. And material and

subcontractors straightforward, you're getting a bill, you're charging for it.

If you might be marking up charging charging for it but you understand what that

cost is but then we we bill our labor so for us we primarily operating cost plus and

we look at labor in a couple different buckets.

Self-performed labor in specifics to trades like carpentry and general labor.

And then we have supervision costs.

...