From the course: Construction Estimating Bid Recap

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Overhead and markup

Overhead and markup - Accubid Tutorial

From the course: Construction Estimating Bid Recap

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Overhead and markup

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- [Tutor] Overhead and markup are definitely important components in the estimate bid recap. We discussed the definitions of overhead, profit, and markup in the beginning of the course. Let's drill in in a little more depth so we can understand these components. Overhead costs are the fixed costs that a company pays to administrate or run the business. They're not the cost affiliated with the particular job or project. You should think of overhead costs as the office support staff and its affiliated functions. I'm going to give you some examples of overhead costs to make it a little bit more clear. Some of these include officers and administrative worker salaries such as secretaries, payroll clerks, accounts payable staff, even estimators. Insurances such as general liability and workers compensation insurance, automotive insurance and so on are also considered overhead expense. These are not the direct job costs or special insurances we spoke about in the previous video. The rent and…

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