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FAQs
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost price.
Should I include VAT in the calculation?
Run figures net of VAT for business-to-business work. If you price domestic jobs, show VAT as a separate line so the margin stays clear.
Is this tool suitable for tenders?
Use it to sanity check price structure. For tenders, use a QS prepared estimate with a BoQ plus prelims, overheads and profit, and risk allowances.
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