Overhead

The Hidden Cost of Jobs That Linger
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The Hidden Cost of Jobs That Linger

Controlling costs is easy. Maintaining cash flow may not be. More

Nothing but Net
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Nothing but Net

Judging a company's profitability based on gross profit can be misleading. Your... More

Do the Math - Overhead & Profit
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Do the Math - Overhead & Profit

In this segment of Do the Math, we look at two numbers that every contractor needs... More

LE Johnson Sliding Multi-Pass and By-Pass Pocket Door Hardware
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LE Johnson Sliding Multi-Pass and By-Pass Pocket Door Hardware

J-shaped guides replace the usual recessed floor track More

Before You Drop Your Prices, Read This
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Before You Drop Your Prices, Read This

Has it ever occurred to you that dropping your prices to stay in business could... More

Getting Paid for Your Time
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Getting Paid for Your Time

If you and your project manager spend 13 hours preparing an estimate for a... More

The True Cost of Labor
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The True Cost of Labor

The true cost of labor More

Pricing Handyman Work
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Pricing Handyman Work

It may surprise you to find out that you're not in business to exercise your skill... More

Letters
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Letters

Fee impact in California; where to find adjustable wall braces; decimal pitch... More

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Allocating Overhead to Labor Makes Financial Sense

If I were to ask ten contractors how they calculate and apply overhead (indirect expense) to their estimates or time-and-material work, I would get ten different answers. If I were to press further as to how they arrived at their numbers, most of their methods would turn out to be arbitrary or have some element of guessing. More

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