General Inquiries

  • 1.  Overhead vs Job Costs

    Posted 11-12-2019 08:23

    Good Morning,

    I am interested in how other companies are treating certain items such as Warehouse hours, Project Manager hours, Field Holiday pay, tools, purchasing, etc.?  We were treating warehouse as overhead but changed to job cost this year so PMs could see what jobs were requiring warehouse deliveries and time.  One problem though is that these are really fixed costs and generally not included in the estimate, just like the PM time.  Field holiday pay and tools have their own job numbers so they are included in overall job costs / gross profit since the PMs don't want the money hitting their jobs because tools can be used for multiple jobs and a holiday can fall during a job that is only a couple weeks long.  We currently book purchasing to overhead.

    I know overall net is net and where the costs go doesn't change net but I am curious at how other treat the costs when I am comparing to the benchmarker analysis that was done.

    Thank you!

    Nicole Lindstrom
    Tore Electric Company
    Dover NJ
    (973) 659-3401