Materials have increased more than 20% in the last 5-8 years.

What is the best way that you have found to tell them that you need labor & materials separate, so at tax time you can send them a 1099 for labor?

ACM (Asbestos Containing Material) abatement is a tough one because often you won't know (outside pipe insulation & 8x8 tiles which I can spot and point out with no testing).

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A good baseline is to calculate material costs (e.g., $300 for paint and supplies) and add a fair hourly rate for labor.

I will also say, I expected over a year and a half going into this, based on my information and research at the time, knowing about permitting and material delays in the area. 

With labor and material, and not counting the identification and obtaining the addresses of owners and matched to properties, I guess about $2.00 per letter. 

I have spreadsheets filled with material lists for every phase of the build that includes pricing for materials as well as labor, and sources that I use for them.

At the end of the project's life the land must be restored to a natural state and the materials must be recycled if possible, eg. stripping out metal, etc. 

Scrren PMC's by asking if you will get the material invoices AND the actual invoices from any contractors they hire. - Be prepared to pay for a PMC's time!