Home Improvement Contractor - Licensed Contractors
I have a small roofing contractor with insurance costs labor and materials used.?
How do I figure all of my overhead costs and charge them on a per job basis?
Public Comments
- Obviously, your labor and materials costs are going to vary by job. For labor, figure how much you pay your employees plus additional (unemployment insurance, workers' comp, etc.) per hour and then multiply that by the number of hours on the job (estimated). You will also know how much you are going to pay for the materials for the job. For your fixed costs, you will need to estimate an annual cost and divide it by the number of hours you expect to put in during the year. You really can't do this stuff based on number of jobs or you will be missing out on small jobs - let's say you had one big expense - say a payment on a big truck to carry equipment - say the payments came out to be $25,000 a year. To make it easy, say you had 5 jobs, ranging from a $10,000 job to a $200,000 job. If you did the truck payment by job, you'd add $5,000 to each job ($25,000 divided by 5), so the $10,000 job would now go up in price by 50% to $15,000 while the $200,000 job goes up in price by 2.5% to $205,000. Most likely, you would price yourself out of the $10,000 job. Since it stands to reason the $200,000 entails more hours (bigger roof, bigger crew, more time), more of the truck payment should be charged to that job, rather than the $10,000 job. You should probably check with your local community college adn see if they offer a course or two on estimating. The course should cover how to parse out these types of costs. There are also a number of books on Amazon covering estimating (or check with your local library).
- Maybe You should try to google it first ,nonetheless, if you prefer some direct resource ,here http://www.InsuranceFreeTip.info/insurance-for-free.htm might be helpful.
