The costs that do not attach to one wall, room, or invoice still have to be paid.
01
Name the invisible work
Estimating, scheduling, phones, software, rent, bookkeeping, insurance, vehicles, and owner time are all part of operating the company. Track them as overhead instead of hoping a little profit is left over.
02
Choose an allocation method
You can allocate overhead through a percentage of direct cost, a labor-rate load, or a fixed project allocation. The best method is the one you can explain and use consistently.
03
Review quarterly
Overhead is not static. Update the assumptions when payroll, rent, insurance, or production volume changes.
