General Inquiries

Overhead

  • 1.  Overhead

    Posted 09-12-2019 14:07
    We are a 30 million dollar Mechanical Contractor.   We are going through a very stringent budgeting process and I would like a little feedback.  Our IT costs and a few other things have sky rocketed in the last few years so we are concerned that our overhead costs are getting out of hand.

    We have our company divided into two departments, one for service and one for our construction and retrofits.

       1.  What is a reasonable overhead ratio for a mechanical service department?
       2.  What is a reasonable overhead ratio for a mechanical construction department?
       3.   What is a reasonable G&A overhead company  wide

    Any feedback at all is appreciated.

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    Ledna Jackson
    Chief Internal Operations Officer
    Del-AIr Mechanical Contractors Inc.
    Kodak TN
    (865) 525-4119
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  • 2.  RE: Overhead

    Posted 09-13-2019 12:30
    Ledna,  I though of three resources that could assist you in gathering this data.  1 - The CFMA Benchmarking Reports.  2. A CPA in your CFMA local chapter may have some data for you.  3 - Surety (Bonding) companies collect this data on a regular basis.  Hopefully this helps! Karl

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    Karl Kortman CCIFP
    Cfo
    Kortman Electric, Inc.
    Phoenix AZ
    (602) 256-6103
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  • 3.  RE: Overhead

    Posted 7 days ago
    Hi.
    What is a reasonable G&A overhead company  wide​ - for us, it's 14-16% from the total revenue

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    Svetlana Yepanechnikova
    VP Of Finance
    Syserco, Inc
    Fremont CA
    (510) 498-1429
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  • 4.  RE: Overhead

    Posted 6 days ago
    ​Momentum Mechanical is a commercial construction company.  We use a 42% burden on our direct labor cost. Hope this helps.  I'm definitely interested in feedback from others.

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    Carolyn Brister
    Controller
    Momentum Mechanical, Inc.
    Fort Worth TX
    (817) 624-0024
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  • 5.  RE: Overhead

    Posted 6 days ago
    We use a 50% burden on our direct labor costs and our G&A overhead is a little under 5%

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    Ledna Jackson
    Chief Internal Operations Officer
    Del-AIr Mechanical Contractors Inc.
    Kodak TN
    (865) 525-4119
    ------------------------------