A subcontractor bids $18,000. The general contractor adds a 12% markup on that subcontract. What is the marked-up amount billed to the owner for that scope?
a.$2,160
b.$20,160
c.$18,000
d.$19,440 markup only
Explanation
Markup = $18,000 x 12% = $2,160. Amount billed = $18,000 + $2,160 = $20,160. The general marks up subcontracts to cover coordination, supervision, and risk.
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