Contractor materials markup

[Andi Mysza]

I’m new to this site and am already learning a lot. Is there an industry standard markup on materials by contractors? When do I know it’s worth my time to shop for, purchase and pick up materials myself vs having the contractor do it?

[Matthew Paul]

There is no industry standard . Why ?  You will price lumber at Home depot . The package total is $1000 . Your contractor will go to a supply house and get the same package for $700 .   You pay $1000 .  So now you want to take profit away from the contractor , But he now finds an "extra" and charges you $400 additional . 

Professional contractors bid jobs , labors work time and materials . 

When I here this from a customer I tell them great . There goes your warranty , have the materials stacked in the right room . Make sure you can read the prints and get the right materials amounts and , nails , extra for cuts and bad material . And remember when you get something wrong I will give you a call to go get whats needed , and by the way you are paying 5 men to sit there until the materials arrive at $75 per man hour . 

You dont save money by supplying your own materials . It costs you . 

Back when I started I was contracted to do a roof , the customer wanted to supply his materials , I fell for it . I had it written that the shingles were to be loaded . (30 sq roof) he decided to save $300 and have them dropped on the driveway instead . (2 story house ) . He figured we would just carry them up .  I told him hell no , but  he was welcome to use our ladder and make 100 trips up carrying a 75 lb bundle of shingles each trip , call me when its done .  It cost him $500 for the truck to come back out .