CEE_595_Estimating_Manual

CEE_595_Estimating_Manual - jubcontractors have...

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jubcontractors have excluded (such as elnporaiy prote~,~on, scaffolding, hoisting. ;ubcontractor PI-ices typically do not arrive eaves little ti~ne to analyze competing bids japs in coverage difficult to address i f you ha :oor.dination with tl-~ese subs beforehand. cutting and patching, etc.). The second is th until bid day, which ,, and rnakes last-minut Ive not done the necess
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24 D I V I S I O N O N L . Figure I . I I General Contractor's Main Office Expense A general conlractor's main office expense consists of many item; The percentage of main office expense declines with the increased annual volume of the contractor. Typical main office expenses ranEe from 2% to 208. with the median about 7.2% of total volume. This equals about 7.7% of direct costs The following are approximate percentages of total overhead for different items usually includeci in a general contractor's main office overhead. With different accounting procedures. these percentages may vary. G E N E R A L R E Q U I R E M E N T S Figure 1. B 3 General Contractor's Main Office Expense for Smaller Projects This table provides average main office expenses (as :I percentage of annual volume\ for contractors specializing in smaller projects, such as repair and.;'or rernodelirlg of existing structures. Figwe 1.14 Overhead and Profit as a Percentage of Project Costs Overhead is defined as costs that are associated wit17 a construction proiect, but not directly with the actual construction. This table shows percentages that can be used as a rule of thumb for estimating overhead costs. Fimse I. lr 2 General Contractor's Main Office Expense as a Percentage of Annual Volume This table represents approximate ranges of the cosl of maintaining the main office, includirlg salaries, as a percentage of the total dollar volume a contractor expects to bill for in their fiscal year. Annual Volume I S'o of Annual Volume Under $1.000.000 13.6% I Overhead and Profit I I I I Allowance - Add tn I:emc I I . . . - . . - . . . - That Do Not Include Allowance to Add to Items OverheadasaPercentageof Subcontracfor's Ogp - Tllat Do Include Direct Cosls Average Subcontraclots O&P Typical by Size of Project hlinimum 5% 251 Mlnlmi~rn 518 under $100.000 30% Average 12% Average I OR Maximum $500.000 25?6 22% Maxirnl~m 15?b $2.000.000 7nnh -- " I I I over $10,000,000 15% 1 Over $10,000,000 1 3.916 I
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D I V I S I O N O h G E N E R A L R E Q U I R E M E N T S E Figure 8.15 Installing Contractor's Overhead and Profit i F 8 - 6 Workers' Compensation Listed are the average installing contractofs percentage mark-ups applied to base labor rates to arrive at typical billing rates. Column A: Workers' Compensation rates are the national average of state rates established for each trade in 1990. Column B: Column B lists average fixed overhead figures for all trades (based on 1990 figures.). Included are federal and state unemployment costs set at 6.2%: Social Securitji taxes (FICA1 set at 7.56%: Bu~lder's Risk Insurance costs set at 0.34%; and public liability costs set at 1.55%. All percentages except those for Social Security taxes vary from state to state as well as from company to company.
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