The Electrical Contractor Network

ECN Electrical Forum
Discussion Forums for Electricians, Inspectors and Related Professionals

Books, Tools and Test Equipment for Electrical and Construction Trades

Register Now!

Register Now!

We want your input!

Featured:
   

2017 NEC and Related
2017 NEC
Now Available!

   
Recent Posts
Industrail Control Panel bonding per 409.108
by sparkyinak
Yesterday at 06:29 PM
Calling all Non-US members!! (Non-US only)
by aussie240
12/07/16 02:39 AM
Photo Upload Tutorial
by DanK
12/06/16 11:35 PM
Sprinklered equipment 26-008
by bigpapa
12/02/16 04:24 PM
On Delay Relay with Auto Reset
by Potseal
12/01/16 09:59 AM
New in the Gallery:
12.5A through 0.75mm˛ flex (just out of curiosity)
Shout Box

Top Posters (30 Days)
gfretwell 13
HotLine1 10
sparkyinak 9
Texas_Ranger 8
Potseal 6
Who's Online
0 registered (), 78 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Topic Options
Rate This Topic
#21969 - 02/13/03 06:18 PM Overhead
spyder Offline
Member

Registered: 10/14/02
Posts: 211
Loc: Massachusetts
Does anyone have any rule of thumb for the percentage that should be figured into a bid for overhead?

Top
Work Gear for Electricians and the Trades

Work Gear for Electricians and the Trades
Work Gear for Electricians and the Trades
Arc Flash Clothing, Gloves, KneePads, Tool Belts, Pouches, Tool Carriers, etc. etc....

#21970 - 02/13/03 06:57 PM Re: Overhead
Jim M Offline
Member

Registered: 08/10/01
Posts: 453
Loc: Chestertown, MD, USA
Spyder,

You will first need to define your costs for office staff, insurances, licenses etc. These cost need to be recouped over the available working hours.

Top
#21971 - 02/13/03 07:47 PM Re: Overhead
HotLine1 Offline

Member

Registered: 04/03/02
Posts: 6805
Loc: Brick, NJ USA
Spyder:
You have to take all your expenses that are not directly related to jobs, come up with a total dollar amount first. (Office/Insurance/Vehicle Costs/etc)

Then, take the above total & divide it to get a "per day cost"

Take the projected days for the bid job & multiply by the daily cost and thats overhead recovery.

Don't overlook Health Insurance , Tax expenses related to payroll & Workers Comp, unless you figured these costs into your "Labor" figures.

John
_________________________
John

Top
#21972 - 02/14/03 05:35 AM Re: Overhead
rowdyrudy Offline
Member

Registered: 11/02/02
Posts: 171
Loc: Mascoutah, IL USA
Years ago I attended a seminar about ways of reducing overhead. One attendee made a statement that broke up everyone. He said that the way he reduced overhead was to fire all of his relatives. Probably excellent advice today.
Rowdy

Top
#21973 - 02/14/03 05:40 AM Re: Overhead
Redsy Offline
Member

Registered: 03/28/01
Posts: 2138
Loc: Bucks County PA
Try 20-30% for Overhead & Profit

Top
#21974 - 02/15/03 04:32 AM Re: Overhead
rowdyrudy Offline
Member

Registered: 11/02/02
Posts: 171
Loc: Mascoutah, IL USA
Seriuosly, overhead costs will vary wildly between contractors. A couple of examples:
Dale P. operates out of his home. His wife handles the telco and the books. He has one, and sometimes two, helpers. He does 99% local work and his longest commute is about 20 minutes. His truck is also his personal transportation. In November 2002 his OH was calculated at 9.8-9.9%.
T.E.C., in a nearby town, on the other hand runs 8 trucks, an office staff of three and a roving super. T.E.C. has a large tool inventory as well as stock. Last Juns their OH was calced to be 19.7-21.1%.
Some EC's budget a number of man-hours to establish OH. Fall under the budget and OH is not met, over budget and it's profit. There are so many variables in OH that each EC must arrive at his own indirect costs. Tools, rent (or taxes), vehicles, insurance of all types, office equipment and supplies, bank loan interest, depreciation, etc. There is no catch-all percent.
Rowdy

Top
#21975 - 02/15/03 08:13 AM Re: Overhead
Electric Eagle Offline
Member

Registered: 04/20/02
Posts: 928
Loc: Alpharetta, GA
I don't figure an overhead percent into the bids because as a percent it varies. Instead I know what my daily overhead as a dollar figure is. Take all of your fixed expsense and divide by 250. Then you know what you have to bring in every day before you make a dime. Do the same for labor. With a little buffer, I know a $15 an hour guy costs me $170 a day after I pay WC, match taxes and other related employee expenses. Don't forget to plan for the future. My overhead just went up $92 a day because we added another truck and moved the shop out of my house and garage.

Top



ECN Electrical Forums - sponsored by Electrical Contractor Network - Electrical and Code Related Discussion for Electrical Contractors, Electricians, Inspectors, Instructors, Engineers and other related Professionals