1. Find the real cost of a billable labor hour
Base wage is only the first layer. Employer-paid burdens, fixed benefits, PTO, training, meetings, and realistic utilization all change the cost of the hour available to sell. Build single-role or blended crew cost in the labor-rate calculator.
2. Decide how work will recover overhead
Normalize indirect costs to an annual amount, then spread them over realistic billable hours, jobs, or a revenue target. The overhead recovery calculatorshows the break-even rate, target operating-margin rate, and capacity sensitivity.
3. Translate cost into a selling-price target
Markup divides gross profit by cost. Gross margin divides gross profit by selling price. Choose the intended denominator before quoting; the markup and margin translator shows the dollar difference when the same percentage is interpreted both ways.
4. Price added scope with the same cost discipline
Added labor, waste, mobilization, schedule disruption, or callback reserve can disappear inside a casual change price. The change-order builder creates an internal pretax planning estimate without pretending to be a legal contract or signature tool.
5. Compare the estimate with the job that happened
Separate revenue changes from cost overruns, compare category-by-category variance, and identify possible—not asserted—drivers in the bid-to-actual analyzer. Update the labor, overhead, or margin assumption that the evidence actually challenges.
Before relying on a result
- Open the formula trace and verify substituted values and units.
- Read the assumptions and costs-not-included list.
- Check nearby scenarios in the sensitivity table.
- Confirm whether the output is gross or operating profit and margin.
- Save locally only when you intend to keep the scenario; export a backup when portability matters.
Keep the definitions close
The contractor pricing glossary defines every repeated pricing term, while the calculation methodology documents formula boundaries and exclusions.