Topic Thread

Burden %

  • 1.  Burden %

    Posted 06-18-2018 08:56

    Through your experience with HUD project audits, what burden %'s were accepted?  There appears to be no HUD guidelines for this issue. Thanks


    BRADLEY K. ALBRITTON
    CONTROLLER

    SHREVE LAND CONSTRUCTORS, LLC
    624 TRAVIS STREET, SUITE 100 SHREVEPORT, LA 71101
    P: 318-226-0056 • F: 318-226-0064 
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  • 2.  RE: Burden %

    Posted 06-19-2018 10:24
    I would be interested in that too...

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    Megan Barnhart
    CFO
    Frank Schipper Construction Co.
    Santa Barbara CA
    (805) 963-4359
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  • 3.  RE: Burden %

    Posted 06-19-2018 11:04
    We do some affordable projects for non-profits in which there is HUD funding on GMP contracts. In our contracts we specify up front what our field burden rate is and that it a negotiated rate between us and the owner. So, under audit, basically all we have to prove is that the negotiated % is the same as what we charged.

    Once in a while we will have owners that will dig into the details of the rate itself but it's usually in the pre-contract stage as part of the negotiations.

    Burden rates are always tricky since there is no consistency as to what is in the rate. The costs are still real, it's just where they show up that might be different. The typical burden rate might have union fringes, payroll taxes and worker comp insurance but I've also see general field supervision, training and education, computers and communication, small tools, etc. Before you can compare your burden others you need to know what they have included.

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    Michael Grant CPA
    Chief Financial Officer
    Cahill Contractors
    San Francisco CA
    (415) 986-0600
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  • 4.  RE: Burden %

    Posted 9 days ago
    I understand that labor burden has many different pieces.  I am trying to see what % you may use for the rate. thanks

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    Bradley Albritton CPA
    Controller
    Shreve Land Constructors, LLC
    Shreveport LA
    (318) 226-0056
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