So we know about what our cost is but that doesn't really get us to $12,000, right?
Our cost is right here.
Our revenues are right here.
And we want our final billings right there.
Like we said, the schedule of values drives the billings.
So, what do we do?
Well, we aren't going to show our direct cost to the client and
to the general contractor.
What we're going to do is put our mark up on this.
And so we talked about we're going to assume a 20% markup of the direct cost.
So really the revenue side of this table right over here,
right here, becomes our schedule of values.
So we're going to tell the contractor, the general contractor, how much labor we
have, how much material cost we have, and then finally, a total cost.
That last column profit isn't for the general contractor or for
the client's consideration.
This is purely internal so that we can see how this changes.
During the rest of this presentation you'll see this chart again and
you'll see how we shift things around to improve these two charts.