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November 10, 2008
11:24 AM

I add in assignable overhead (nonlabor, nonmaterial): bonds, special insurance such as OCP Policies, equip. rentals, permits etc.

For unassignable I do $35./man hr. Period.

It's too high; I can't compete with other bidders. On the other hand, I wouldn't dream of not adding it in because when review time comes I'm screwed, for sure. It doesn't seem right, does it?

Thanks, Kimmie

November 10, 2008
7:10 AM

Hello all,

I have a couple general questions regarding overhead.

I work for a landscape construction company in NY. We focus on demo during the colder seasons (FYI: I've just begun estimating demo). My overhead seems to be more than most companies' labor rates ($35.00/man hour). We are union, so after you tack on our labor rates, we are being blown out of the bidding box.

How do you (or your accountants) figure overhead into a job? My old boss told me 20% of the total cost of the job, but also keep in mind that he did masonry in NJ, and he did like $15-20M a year.

Does anyone have any good tips for reducing overhead costs (even if it's over a long period of time)?

Many thanks (and Cheers!), KimmieQ

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