![]() ![]() For that reason, well-crafted construction bids will not only cover the cost of labor and materials, but also the overhead required for keeping the business going. More common - and more often forgotten - are indirect costs, like salaries and benefits for office staff, rent for a building, marketing and advertising costs, legal fees, and more.Īltogether, overhead costs represent funds that a construction business needs to operate. Some examples of direct costs would include equipment rental or temporary office structures. In construction, overhead includes both direct costs, which are tied to specific jobs, and indirect costs, which include operational costs required to run a business. Overhead is the cost of running a business. Contractor overhead and profit don’t happen by accident.6 tips to boost profit and reduce overhead.
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