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Markup in the construction industry refers to the percentage increase added to the actual costs of construction projects to determine the selling price. The markup covers overhead expenses, such as administrative costs, and ensures the contractor makes a profit from the project. The percentage can vary greatly based on factors like the complexity of the project, competition in the local market, and the contractor's reputation and experience. Careful consideration is needed when deciding the markup as too high can make a contractor's bid uncompetitive, while too low may not cover all expenses or allow for a reasonable profit margin. A good understanding of the project, accurate cost estimations, and market research are crucial for determining an appropriate markup.

Time-and-material billing is a method used in the construction industry where a client is charged based on the actual cost of labor and materials for a project, along with an added markup for the contractor's profit. This approach promotes transparency as customers directly pay for the time spent on the project and materials used. The advantage of this method is the flexibility it provides - if a project scope is unclear or likely to change, it can be more efficient than a fixed-price model. However, it also contains a risk for the client, with a chance that costs could increase if the construction takes longer or requires more resources than estimated. It requires meticulous tracking of working hours, materials, and equipment used. The client also needs to keep an eye on the project to avoid unnecessary costs.

Bottom-of-Chain or Low-Tier in the construction industry refers to the lowest level of subcontractors or suppliers involved in a construction project. They are at the end of the construction chain, typically providing specific services or materials as subcontracted by higher-tier companies. These can include specialized tasks like electrical work, plumbing, landscaping, or supply of construction materials. Their work is crucial as they lay the foundation for more complex tasks to be executed by upper-tier contractors. They are also bound by the contracts in place, like other members of the chain, although directly managed by mid-tier subcontractors instead of the main contractor.