Sample Company

Overhead Rate Calculation Prior Year Proposed Proposed

Actual Totals to Rent/Buy to Rent+Hire
Annual Revenue (SALES) $ 150,000 $ 180,000 $ 320,000
Direct Cost of Goods $ 127,500 85.00% $ 153,000 85.00% $ 272,000 85.00%
Gross Profit $ 22,500 $ 27,000 $ 48,000

Overhead Expenses
marketing & advertising $ 250 0.17% $ 250 0.14% $ 250 0.08%
bank fees $ 600 0.40% $ 600 0.33% $ 600 0.19%
depreciation fixed assets (equip, computers, furn) $ 350 0.23% $ 350 0.19% $ 350 0.11%
dues and subcriptions $ 250 0.17% $ 250 0.14% $ 250 0.08%
estimating expense $ 500 0.33% $ 500 0.28% $ 500 0.16%
insurance expense $ 688 0.46% $ 688 0.38% $ 688 0.22%
interest expense (business loans) $ 850 0.57% $ 850 0.47% $ 850 0.27%
meals & entertainment $ 500 0.33% $ 500 0.28% $ 500 0.16%
office equipment & repairs $ 500 0.33% $ 500 0.28% $ 500 0.16%
office payroll expenses $ - 0.00% $ - 0.00% $ 15,000 4.69%
office labor burden Rate from spreadsheet $ - 0.00% $ - 0.00% $ 5,915 1.85%
office supplies $ 750 0.50% $ 750 0.42% $ 750 0.23%
franchise tax $ - 0.00% $ - 0.00% $ - 0.00%
professional fees - accounting $ 1,200 0.80% $ 1,200 0.67% $ 1,200 0.38%
professional fees- legal manual review $ 500 0.33% $ 500 0.28% $ 500 0.16%
recruitment expense (back ground ck) $ 208 0.14% $ 208 0.12% $ 208 0.07%
Office & Warehouse Rent/Buy $ - 0.00% $ 7,500 4.17% $ 7,500 2.34%
property taxes $ 1,500 0.83% $ 1,500 0.47%
telephone / internet / cell $ 3,000 2.00% $ 3,000 1.67% $ 3,000 0.94%
truck expenses (if not used job specific) $ 3,600 2.40% $ 3,600 2.00% $ 3,600 1.13%
uniforms expenses $ 500 0.33% $ 500 0.28% $ 500 0.16%
utilities ( electricity, water, security) $ - 0.00% $ 2,200 1.22% $ 2,200 0.69%

Total G & A Expenses $ 14,246 9.50% $ 25,446 14.14% $ 46,361 14.49%

Total Net Income $ 8,254 $ 1,554 $ 1,639
Total Overhead Rate 9.50% 14.14% 14.49%
Notes:
1. Overhead Rate should never be over 15% or it will be very difficult to compete
2. in this rate only include employees that are not working directly on the project or contract (admin/acct, business development, marketing)
ss development, marketing)
Sample Company
Overhead Budget VS. Actuals Proposed Actuals Variance
to Rent+Hire Costs Costs
Annual Revenue (SALES) $ 320,000 $ 325,000 $ (5,000)
Direct Cost of Goods $ 272,000 85.00% $ 276,250 85.00% $ (4,250)
Gross Profit $ 48,000 $ 48,750 $ (750)

Overhead Expenses
marketing & advertising $ 250 0.08% $ 300 0.09% $ (50)
bank fees $ 600 0.19% $ 600 0.18% $ -
depreciation fixed assets (equip, computers, $ 350 0.11% $ 325 0.10% $ 25
dues and subcriptions $ 250 0.08% $ 225 0.07% $ 25
estimating expense $ 500 0.16% $ 500 0.15% $ -
insurance expense $ 688 0.22% $ 690 0.21% $ (2)
interest expense (business loans) $ 850 0.27% $ 800 0.25% $ 50
meals & entertainment $ 500 0.16% $ 500 0.15% $ -
office equipment & repairs $ 500 0.16% $ 400 0.12% $ 100
office payroll expenses $ 15,000 4.69% $ 12,500 3.85% $ 2,500
office labor burden Rate from spreadsheet $ 5,915 1.85% $ 4,929 1.52% $ 986
office supplies $ 750 0.23% $ 650 0.20% $ 100
franchise tax $ - 0.00% $ - 0.00% $ -
professional fees - accounting $ 1,200 0.38% $ 1,000 0.31% $ 200
professional fees- legal manual review $ 500 0.16% $ 150 0.05% $ 350
recruitment expense (back ground ck) $ 208 0.07% $ 350 0.11% $ (142)
Office & Warehouse Rent/Buy $ 7,500 2.34% $ 7,500 2.31% $ -
property taxes $ 1,500 0.47% $ - 0.00% $ 1,500
telephone / internet / cell $ 3,000 0.94% $ 2,750 0.85% $ 250
truck expenses (if not used job specific) $ 3,600 1.13% $ 3,700 1.14% $ (100)
uniforms expenses $ 500 0.16% $ 478 0.15% $ 22
utilities ( electricity, water, security) $ 2,200 0.69% $ 2,300 0.71% $ (100)

Total G & A Expenses $ 46,361 14.49% $ 40,647 12.51% $ 5,714

Total Net Income $ 1,639 $ 8,103 $ (6,464)
Total Overhead Rate 14.49% 12.51% 1.98%
Notes:
1. Overhead Rate should never be over 15% or it will be very difficult to compete
2. in this rate only include employees that are not working directly on the project or contract (admin/acct, business development, marketing)
3. update with actuals
4. this report should come from your accounting software and should be done on a monthly basis
ness development, marketing)
Sample Company
Labor Burden Rate monthly monthly monthly monthly monthly days days days days
rate rate rate rate rate rate rate rate rate rate rate rate rate rate rate
7.65% 0.80% 3.14% $ 22.99 6.29% 3% $ 174.00 $ 20.23 $ 5.46 $ 4.90 $ 14.50 14 5 6 5
FIELD hourly annual fica futa twc gen liab Works 401k health dental vision life/ad&d short disab. vac sick hol bonus
title pay pay taxes taxes taxes ins Comp co. pay insur insur insur insur insur pay pay pay pay
1 proj manager 30.00 62,400 4,774 56 283 1,434 3,925 1,908 2,088 243 66 59 174 3,360 1,200 1,440 1,200
2 proj manager 30.00 62,400 4,774 56 283 1,434 3,925 1,908 2,088 243 66 59 174 3,360 1,200 1,440 1,200
3 superintendent 25.00 52,000 3,978 56 283 1,195 3,271 1,590 2,088 243 66 59 174 2,800 1,000 1,200 1,000
4 carpenter 15.00 31,200 2,387 56 283 717 1,962 954 2,088 243 66 59 174 1,680 600 720 600
5 carpenter 15.00 31,200 2,387 56 283 717 1,962 954 2,088 243 66 59 174 1,680 600 720 600
6 carpenter 14.00 29,120 2,228 56 283 669 1,832 890 2,088 243 66 59 174 1,568 560 672 560
7 carpenter 15.00 31,200 2,387 56 283 717 1,962 954 2,088 243 66 59 174 1,680 600 720 600
8 carpenter helper 10.00 20,800 1,591 56 283 478 1,308 636 2,088 243 66 59 174 1,120 400 480 400
9 carpenter helper 10.00 20,800 1,591 56 283 478 1,308 636 2,088 243 66 59 174 1,120 400 480 400
10 labor 9.00 18,720 1,432 56 283 430 1,177 572 2,088 243 66 59 174 1,008 360 432 360
11 labor 9.50 19,760 1,512 56 283 454 1,243 604 2,088 243 66 59 174 1,064 380 456 380
field totals $ 379,600 $ 29,039 $ 616 $ 3,109 $ 8,726 $ 23,877 $ 11,607 $ 22,968 $ 2,670 $ 721 $ 647 $ 1,914 $ 20,440 $ 7,300 $ 8,760 $ 7,300
7.65% 0.16% 0.82% 2.30% 6.29% 3.06% 6.05% 0.70% 0.19% 0.17% 0.50% 5.38% 1.92% 2.31% 1.92%
Labor Burden Rate for Direct Cost 39.43%
- - -
notes:
1. enter only in blue and always use actual costs
2. only use when you hire actual employees.
3. include yourself if you are working directly with the project
4. this rate should never be more than 45%
5. bonus rates helps if it's in writing in employee manual to get clients to pay for it.
6. add costs even if you do not have the expense but so one day you will be able to buy.
Project Name
Company Name
Sample Bid Calculation
sub
item description material labor equip other cost totals
$ -
project manager 3500 $ 3,500
superintendent 7500 $ 7,500
concrete 1100 650 350 $ 2,100
carpentry 3725 1500 $ 5,225
structural steel 1618 800 150 $ 2,568
metal walls 1740 650 $ 2,390
roof repairs 2208 $ 2,208
joint sealants 500 $ 500
doors and hardware 6500 5500 $ 12,000
glazing 1200 600 $ 1,800
tile 3600 $ 3,600
flooring 8000 $ 8,000
painting 9529 $ 9,529
accessories 1700 1200 $ 2,900
casework 1800 $ 1,800
plumbing 5000 $ 5,000
electrical 6600 $ 6,600
permits 500 $ 500
truck & phone 1200 $ 1,200
total costs $ 17,583 $ 21,900 $ 1,700 $ 500 $ 37,237 $ 78,920 actual
labor burden 39.43% $ 8,636 actual 39.43%
gen. liab ins 2.00% $ 1,751
overhead fee 12.00% $ 10,717 (adjustable) 14.49%
profit fee 10.00% $ 10,002 (adjustable)
bond fee 3.00% $ 3,301 add if needed
sales tax 8.25% $ 9,350 add if needed
total bid amount $ 122,677

NOTES:
1. enter items in blue only
2. type in the % you want to use on this bid
3. when awarded contract, enter estimate in acct system to compare actual costs to estimate
4. labor burden rate comes from labor burden worksheet
5. gen liab ins rate needs to be confirmed with actual insurance costs but should = actual cost/annual sales
6. overhead rate and profit rate are adjustable based on how aggressive you want to be to compete
7. bond fee needs to be confirmed with bonding agent
8. sales tax is calculated based on whether client is taxable and rate to use needs to be based on location of service
9. Labor Burden Rate should never go over 45%
10. Overhead Rate should never go over 15%
11. create weekly rates for truck and phone usage if they are used for the project directly
12. MOST IMPORTANT - always ask for a bid tab to see how you fell with competition
Project Name
Job Cost Budget VS Actual
job actual variance
item description budget cost amounts

project manager - Labor $ 3,500 $ 3,500 $ -

superintendent - Labor $ 7,500 $ 7,200 $ 300
concrete - Material $ 1,100 $ 1,000 $ 100
concrete - Labor $ 650 $ 675 $ (25)
concrete - Equip $ 350 $ 325 $ 25
carpentry - Equip $ 3,725 $ 3,725 $ -
carpentry - Labor $ 1,500 $ 1,500 $ -
struc steel - Material $ 1,618 $ 1,618 $ -
Struc Steel - Labor $ 800 $ 800 $ -
Struc Steel - Equip $ 150 $ 150 $ -
metal walls - Materials $ 1,740 $ 1,740 $ -
metal walls - Labor $ 650 $ 650 $ -
roof repairs - Sub $ 2,208 $ 2,208 $ -
joint sealants - Sub $ 500 $ 500 $ -
doors/ HW - Materials $ 6,500 $ 6,000 $ 500
doors/ HW - Labor $ 5,500 $ 5,500 $ -
glazing - Materials $ 1,200 $ 1,200 $ -
glazing - Labor $ 600 $ 600 $ -
tile - Sub $ 3,600 $ 3,600 $ -
flooring - Sub $ 8,000 $ 8,000 $ -
painting - Sub $ 9,529 $ 9,529 $ -
accesr - Material $ 1,700 $ 1,750 $ (50)
accesr - Labor $ 1,200 $ 1,100 $ 100
casework - Sub $ 1,800 $ 1,800 $ -
plumbing - Sub $ 5,000 $ 5,000 $ -
electrical - Sub $ 6,600 $ 6,600 $ -
permits - other $ 500 $ 500 $ -
truck/phone - Equip $ 1,200 $ 1,200 $ -
Labor Burden - Other $ 8,636 $ 8,636 $ -
BOND - Other $ 3,301 $ 3,301 $ -
total costs $ 90,857 $ 89,907 $ 950

NOTES:
1. enter items in blue only
2. enter estimate in acct software, this report should be a report in quickbooks
 Status of Contracts
-1- -2- -3- -4- -5- -6- -7- -8- -9-
Projected -10- -11- -12- -13- -14- -15- -16- -17- -18- -19- -20-
Original (Assumed if cost plus) Revised or Assumed (Assumed if cost plus) Gross Gross Gross profit
Projected Cost at % Comp Projected gross profit Under Over Balance
Contract
Job # Job Name Contract Contract Total Cost Billed to Income Profit Earned Prior earned this
Estimated Profit Estimated Profit cost to Completio Earned Earned period
billings billings to Bill
type Amount w/o Amount w/o to date n date Period
Cost 1-2 % Cost 4-5 % complete 7+8 7/9 4-9 % 4*10 14-7 15-16 14-13 13-14 4-13
tax tax
Jobs In Progress
6 LS 9,369 8,150 1,219 13.0 9,369 8,150 1,219 13.0 3,500 4,650 8,150 42.94 1,219 13.0 4,023 523 - 523 4,023 - 9,369
7 LS 23,281 19,000 4,281 18.4 23,281 19,000 4,281 18.4 1,800 17,200 19,000 9.47 4,281 18.4 2,500 2,206 406 - 406 - 294 20,781
8 LS 17,284 15,000 2,284 13.2 17,284 15,000 2,284 13.2 7,000 8,000 15,000 46.67 2,284 13.2 - 8,066 1,066 - 1,066 8,066 - 17,284
9 LS 25,475 22,000 3,475 13.6 25,475 22,000 3,475 13.6 3,900 18,100 22,000 17.73 3,475 13.6 - 4,516 616 - 616 4,516 - 25,475
10 LS 19,987 15,988 3,999 20.0 19,987 15,988 3,999 20.0 6,800 9,188 15,988 42.53 3,999 20.0 2,000 8,501 1,701 - 1,701 6,501 - 17,987
Succesful Bids/Unwritten Contracts
LS - - - 0.0 - - - 0.0 - - - - - 0.0 - - - - - - - -
Totals - In Progress 95,396 80,138 15,258 16.0 95,396 80,138 15,258 16.0 23,000 57,138 80,138 28.70 15,258 16.0 4,500 27,312 4,312 - 4,312 23,106 294 90,896

Jobs Completed Since Last Statements

1 LS 2,624 1,450 1,174 44.7 3,500 1,800 1,700 48.6 1,800 - 1,800 100.00 1,700 48.6 3,500 3,500 1,700 - 1,700 - - -
2 LS 15,653 12,500 3,153 20.1 15,653 11,500 4,153 26.5 11,500 - 11,500 100.00 4,153 26.5 15,653 15,653 4,153 - 4,153 - - -
3 LS 32,940 28,000 4,940 15.0 32,940 26,000 6,940 21.1 26,000 - 26,000 100.00 6,940 21.1 32,940 32,940 6,940 - 6,940 - - -
4 LS 2,524 2,100 424 16.8 2,524 1,900 624 24.7 1,900 - 1,900 100.00 624 24.7 2,524 2,524 624 - 624 - - -
5 LS 19,055 16,148 2,907 15.3 19,055 16,000 3,055 16.0 16,000 - 16,000 100.00 3,055 16.0 19,055 19,055 3,055 - 3,055 - - -
Other - Pr Yr - - - 0.0 - - - 0.0 - - - - - 0.0 - - - - - - - -
Totals - Since Last 60,198 60,198 12,598 20.9 73,672 57,200 16,472 22.4 57,200 - 57,200 100.00 16,472 22.4 73,672 73,672 16,472 - 16,472 - - -
Less Amounts For Prior Yrs - - 0.00
Grand Totals 155,594 140,336 27,856 17.9 169,068 137,338 31,730 18.8 80,200 57,138 137,338 58.40 31,730 18.8 78,172 100,984 20,784 - 20,784 23,106 294 90,896

notes:
1. enter only items in blue
2. update on a monthly basis
3. review how jobs are doing
4. make adjustments when needed
5. Balance to bill is your back log of amount of work pending to be performed.
Strategic Financial Growth Plan
Company Performance
0% 1% 9% 6%
Increase Increase Increase Increase
actual actual GOAL GOAL
12/31/15 12/31/16 12/31/17 12/31/18
Year 1 Year 2 Year 3 Year 4

job revenue 163,666 165,243 180,000 190,000

job cost 139,962 131,774 152,308 161,325
profit $ 23,704 14.5% 33,469 20.3% 27,692 15.4% 28,675 15.1%

overhead expenses 15,810 9.7% 13,884 8.4% 15,800 8.8% 16,000 8.4%

$$ left in company 7,894 4.8% 19,585 11.9% 11,892 6.6% 12,675 6.7%

$ in backlog 88,000 90,000 95,000 105,000

# months 6.39 6.00 6.00 6.00
Bexar Co.
Port SA
UHS
Private Work
SAISD
City of SA