How Do You Decide What's a Fair Percentage for a Contractor's Billed Rate?

How do I determine what percentage of a billed rate is 'fair' for the contractor? What factors play into this percentage, and should the size of the consulting company play into this?

When evaluating the fairness of a contractor's billed rate, several factors come into play. These may include the contractor's level of expertise, the complexity of the project, market rates for similar services, and the contractor's overhead costs. The size of the consulting company can also be a consideration, as larger firms may have higher operating expenses that could impact their pricing structure. It is essential to consider all these factors to arrive at a fair and competitive percentage for the contractor's billed rate.

Please provide the type of organization in which you are going to engage a contractor. What type of work will the contractor be performing, and how are you planning to do the billing, i.e., piece rate or man-hour rate? How many employees are you planning to engage? These details are required to give you a suggestion.

Normally, factories fix the minimum wage + ESIC + EPF contributions + 10% as a service charge.