Average Contractors Overhead Percentage

 
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Old 08-23-2008, 02:28 PM   #1
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Average Contractors Overhead Percentage


I was stimulated to find out what the "Real World" average Contractors Percentage of Overhead costs wind up as their totals for being in business.

The reason I ask, is that Insurance Companies pay a set fee, if deemed required per their interpretation, to pay a 10% Overhead and 10% Profit.

Personally, those amounts are unbearable to me.

Mine average between 28% to 31%


So, not only in Roofing, but across the board, what are your average overhead percentage lows and highs?

Ed
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Old 08-23-2008, 02:51 PM   #2
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Re: Average Contractors Overhead Percentage


1998-2000-- 53%
2001-2003 --69%
2004-2007-- 80%

2008--------- 67-70%

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Old 08-23-2008, 04:22 PM   #3
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Re: Average Contractors Overhead Percentage


Is that just your Overhead or Overhead And Profit?

I am just looking specifically for Overhead percentages, but if you want to separate out the Net Profit in Percentages, that would be useful too.

So, my Net Profit is in the lines of around 25 % Historically, but I need to check my figures to get it exact.

I know I posted the exact totals in both the Cash Basis and the Accrual Method as a combined total here not too long ago and they Totaled between 49 % and 53 %.

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Old 08-23-2008, 04:28 PM   #4
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Re: Average Contractors Overhead Percentage


its been about 25% for my first two year, but im going to be pushing 60% this year, new truck, higher insurance premiums, gas,
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Old 08-23-2008, 05:03 PM   #5
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Re: Average Contractors Overhead Percentage


Quote:
Originally Posted by Ed the Roofer View Post
Is that just your Overhead or Overhead And Profit?

I am just looking specifically for Overhead percentages, but if you want to separate out the Net Profit in Percentages, that would be useful too.

So, my Net Profit is in the lines of around 25 % Historically, but I need to check my figures to get it exact.

I know I posted the exact totals in both the Cash Basis and the Accrual Method as a combined total here not too long ago and they Totaled between 49 % and 53 %.

Ed
That is for Overhead and profit.

I try for 40% GP and profit of 10-15%

3-5% margin of era, cost over runs etc

Is that better?
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Old 08-23-2008, 05:06 PM   #6
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Re: Average Contractors Overhead Percentage


service side, OH ran about 25-30%....

commercial construction runs about 14-16%

just overhead....not labor....
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Old 08-23-2008, 05:37 PM   #7
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Re: Average Contractors Overhead Percentage


Here are my Exact figures combined from earlier this year, copied from a post in May.

This is Overhead and Profit combined to arrive at those totals, taken before my sales went into the chitter for the middle of summer.

Ed



If I went by historical records from my accounting program, then I would multiply my materials cost by anywhere from 3.571 to 4.000 to arrive at the final invoice amount of the average of my jobs.

This provides me with the following gross profit margins.

Cash Basis = 48.9 %

Accrual Basis = 54.4 %


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