Including your Indirect Costs for Potential Projects

Indirect Costs

Include your Indirect Costs for Potential Projects

When calculating your desired markup for estimating potential projects, ensure you are including indirect costs. Some people believe indirect costs and general and administrative costs are the same: they are not the same. Some examples of indirect costs are:

  • Project Managers’ salaries not charged to specific projects
  • Fringe benefits such as health insurance for project managers and field workers not charged to specific projects
  • Field employees’ paid time off
  • Field employees’ pension costs
  • Small tools and supplies needed for projects, however, not charged to specific projects
  • Repairs, insurance, and fuel on equipment
  • Production related training
  • Production Software

If you need assistance with calculating your desired markup, please call Susan at 630.523.5762. For more helpful tips on becoming a highly profitable business owner, check out Highpoint Advisory Services.


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