Table of Contents

• Overhead
• Overhead Expense Items
• Job Overhead Items

What is Overhead?

Overhead are cost items that cannot readily be charged to any one project, but represent the cost of operating a construction company. They are incurred regardless of any specific project. There are two types of overhead items, Overhead Expense Items and Job Overhead Items.

Overhead Expense Items

Overhead Expense Items include, but are not limited to, costs in the following categories:

Office Expenses

• Rent (If the building is owned then the cost of the building plus a return upon your investment)
• Electricity
• Heat
• Water
• Office Supplies
• Postage
• Insurance
• Taxes
• Telephones
• Office Machines
• Furnishings

Salaries

Exempt Employees (Employees you are exempt from paying overtime)

• Salaried Employees

• President
• Vice President
• Controller
• Chief Estimator
• Human Resource Director

Non-Exempt Employees (Dept of Labor requires paying overtime when overtime is worked)

• Hourly employees

• Secretaries
• Payroll clerk
• Accounts payable clerk

Other Expenses

• Advertising
• Trade journals
• Donations
• Legal Services
• Accounting Services
• Club and Assoc.. dues
• Travel and Entertainment
• Cars and Insurance

Job Overhead Items

Job Overhead includes items that can be charged to a specific project, but cannot readily be charge to a specific item of work on the project. They may include, but are not limited to, the following catagories.

Salaries

• Superintendent
• Assistant Superintendent
• Timekeeper
• Materials Clerk
• Foreman

Temporary Office

• Heat
• Lights
• Equipment

Temporary Buildings

• Barricades
• Enclosures
• Signals

Temporary Utilities

• Power
• Water
• Fuel

Other Items

• Sanitary Facilities
• Drinking Water
• Photographs
• Surveys
• Cleanup
• Insurance
• Winter Construction