Overhead Rate

Job Costing

The ratio of indirect costs (rent, insurance, office staff, vehicles, utilities) to direct costs or revenue in a construction business. Typical overhead rates for trade contractors (HVAC, plumbing, electrical) range from 25-50% of revenue. Accurate overhead calculation is critical for job pricing, profit margin analysis, and financial planning. Overhead is often allocated to individual jobs using labor hours, direct costs, or revenue-based methods.

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