Multiple Choice

You are a new electrical contractor reviewing two internal estimates your office manager prepared for a large commercial build-out. Both estimates use the same industry-standard labor-unit manual for installation hours.

Estimate A adds a 15% markup to every installation labor line item to cover the foreman's time directing the crew on-site.

Estimate B lists foreman hours as a separate line item, calculated based on the project's expected duration, crew size, and complexity.

Which estimate uses the stronger approach to accounting for supervision, and why?

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Updated 2026-05-04

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