Construction glossary term


Overhead expenses are the costs associated with running a construction business that are not related to the cost of materials or labor for any specific project. This includes things like insurance, rent, utilities, office and administrative staff, taxes, marketing and advertising, personnel costs including training and development, legal fees or accounting services, vehicle maintenance and fuel costs, software and technology costs, capital expenditures for new equipment or upgrades to existing tools and equipment, just to name a few. Overhead expenses also include indirect labor costs such as wages paid to supervisors who oversee multiple jobs at once.

Overhead can vary widely depending on the size and scope of each project. All these additional expenses add up over time so it’s important to accurately track and budget for them when planning. By proactively monitoring overhead expenses, businesses can save money by avoiding unnecessary costs or by finding more cost-effective options. The benefits of better managing overhead expenses can help any business improve their bottom line and increase profitability.

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