Estimating Overheads and Costs
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- Опубликовано: 12 май 2016
- What overheads and costs should you include when estimating and quoting? Paul Lawrence from Masters in Building Training explains the secrets in calculating your overheads. Need building training? Contact us www.mibt.edu.au
Great video, thank you for recording this for us!
very clear introduction thank you.
Great video, great training!
A true eye opener,,
Great Video very informative!! Thanks
GREAT INFORMATION! WHERE CAN i GET THE SPREADSHEET?
Great stuff 👍
Great video
When a contractor is executing a big project at site, there is usually a site office established by contactor for him and the supervising consultant, and big site camp with labour accomodation, warehouse, equipment repair garage, fuel station, etc.
So, when you consider telephone, fax, electricity and other utilities as overhead costs, do you mean those at the project site office and camp or at head office?
Direct cost, indirect cost and overheads are confusing me
Thank you,
Whats really confusing me is the overhead this is the second time watching this video
@@epenaloza52
It's been a year since I commented the above. Thanks for bringing me back : )
I hope you will no more have confusion : )
DIRECT COSTS: are associated with the new project, but they are costs directly involved in executing the project e.g. labor, materials, and machinery.
INDIRECT COSTS: are also associated with that specific project but they are not directly involved in the execution or production. e.g. the costs of site offices established for the purpose of the project, various other costs incurred as a result of this new project.
OVERHEADS: they are not directly or indirectly related to this new project. These costs are always present in the company, even before the start of this new project. e.g. The costs at the various costs at the head office, including the salary of the General Manager, Commerical Manager, Accounts Manager, Humans Resource department costs, etc of the company.
These overhead costs are shared by the various projects that the company is having. So, when a company is estimating the costs for a new project, some percentage of this overhead cost will also be assigned to the new project. e.g. 2%, 4%, 5% etc. The General Manager (CEO) of the company will decide what percentage should be assigned.
@@Faiselmoha can you give me an example as a carpenter estimating a kitchen thats 10 by 10 with 1 employee?!
@@epenaloza52
l don't knw well about Carpentery, but let me try.
DIRECT COST:
- cost (daily or hourly salary) of persons working directly on this carpentry work.
- cost of tools and equipment necessary to do this carpentry work. e.g. hammer saw, drilling tools, etc.
- cost of material: wood items, nails, binding material e.g. glue, etc.
INDIRECT COST:
- all other money (cost) you may spend to complete this carpentry work. e.g. money you spend for transport (of you, helper, material, etc.). If you use a vehicle, cost of this vehicle and fuel etc.
OVERHEAD:
the above Direct and Indirect costs are the main costs for estimation. Overhead costs are important for bigger companies where they have Head Office with so many employees working there, costs of the buildings, electricity, printers, taxes, etc.
if you are self-employed Carpenter, overhead charges are not important cost items to consider. After calculating the DIRECT and INDIRECT costs for your project, just Add some percentage of the Total as your PROFIT MARGIN.
@@epenaloza52
did it help?
Where can I get that spreadsheet?
Please do the course www.mibt.edu.au/business/estimating-and-tendering/
@@mastersinbuildingtraining7289 i believe that link is no longer working
Where is the explanation on material estimation....?
beginning part makes me not want to be a contractor anymore lol
2500x48 = 120,000
He did the Jedi mind trick on them 😂
He’s funny
Incorrect arithmetic! Creates doubts in his training?????