PRICE BUILDUP
Build your number.
Stupid simple.
Add the material quotes you are carrying, layer in other direct costs, build the labor, choose your markups, and see exactly how the final bid comes together.
INPUT ยท 01
3. MATERIAL / OTHER MARKUP
What are you charging on those costs?
5. LABOR MARKUP
What are you charging on labor?
BID SUMMARY
Here's the number.
PDF / Print Details (Optional)Add estimate information to your saved PDF.
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CONSTRUCTION PRICING GUIDE
How the construction price buildup calculator works
BidSimp builds a selling price from direct material, equipment, miscellaneous, other direct costs, and labor. Material and other direct costs share one markup selection, labor has its own markup, and the result shows both effective markup on cost and gross margin on the selling price.
Enter the costs you expect to pay before markup.
Each markup is calculated on its own direct-cost group.
See why a markup percentage is not the same as gross margin.
Price buildup formulas used by BidSimp
- Material and other direct cost
- Supplier quotes + equipment / rentals + miscellaneous + custom other-cost lines.
- Material / other sell
- Material and other direct cost + that cost × material markup percentage.
- Labor hours
- Workers × days × hours per day for each labor row.
- Labor cost
- Total labor hours × entered hourly cost rate.
- Labor sell
- Labor cost + labor cost × labor markup percentage.
- Final bid
- Material / other sell + labor sell.
- Effective markup
- Total markup dollars ÷ total direct cost.
- Gross margin
- Total markup dollars ÷ final bid price.
WORKED EXAMPLE
Material, labor, and two different markups
- Material quotes of $10,000 plus $500 equipment, $250 miscellaneous, and $250 other cost create $11,000 of material / other direct cost.
- A 15% markup adds $1,650, producing a material / other sell price of $12,650.
- Three workers × five days × eight hours = 120 hours. At $50 per hour, direct labor is $6,000.
- A 20% labor markup adds $1,200, producing a labor sell price of $7,200.
- Total direct cost is $17,000, total markup is $2,850, and the final bid is $19,850.
- The effective markup is 16.76%, while gross margin is 14.36%.
Markup is not the same as margin
Markup measures the increase over cost. Margin measures the markup dollars as a percentage of the final selling price. A 20% markup on $100 creates a $120 sell price, but the $20 gross profit is only 16.67% of the sell price. To produce a 20% gross margin on $100 of cost, the sell price would need to be $125, which is a 25% markup.
BidSimp accepts markup percentages and reports the resulting margin. It does not automatically solve for a target margin, so review both numbers before relying on the final bid.
Costs that are not added automatically
The calculator only prices what you enter. It does not automatically add sales or use tax, payroll burden, insurance, small tools, supervision, project management, overhead, contingency, escalation, bonds, permits, freight, unloading, retainage financing, commissions, warranty exposure, or profit. Add those as direct-cost lines when appropriate or make sure they are intentionally covered by your cost rates and markup structure.
A clean total is not a complete bid: verify scope, quantities, exclusions, quote validity, labor productivity, contract terms, and risk before submitting a proposal or entering an agreement.
Common price buildup mistakes
- Entering an employee wage as the labor cost rate without payroll burden, insurance, or other labor costs.
- Confusing markup with margin and assuming the displayed percentage means the same thing.
- Marking up material but forgetting equipment, freight, rentals, or other direct costs.
- Adding overhead in direct-cost rows and then including the same overhead again in markup.
- Using expired supplier quotes or leaving exclusions and alternates out of the final proposal.
Review before submitting
- Quantities, supplier quotes, tax, freight, escalation, alternates, and quote expiration dates.
- Labor crew, productivity, hours, overtime, travel, supervision, burden, and schedule constraints.
- Equipment, access, hoisting, protection, cleanup, permits, bonds, insurance, and closeout.
- Overhead, contingency, profit, payment terms, retainage, warranty, and contract risk.
- Scope inclusions, exclusions, clarifications, allowances, and proposal qualifications.
Estimate responsibly. BidSimp is an estimating aid. Verify all quotes, labor assumptions, rates, markups, taxes, overhead, contract requirements, and project conditions before submitting a bid or entering into an agreement. Terms & Disclaimer