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Identifying Overhead Costs

Identifying Overhead Costs

Identifying Overhead CostsIdentifying overhead requires, first of all, tracking it in your accounting records. From your accounts, you can pick up your disbursements for both fixed and variable overhead. But like direct costs, overhead includes slippery items - in particular three costs that won’t necessarily show up in your accounting records because you don’t write a check for them. They include:  Rent for space used by your company but not paid for out of your company accounts, such as a room for an office or shop space in your home   Cost of capital, the money you are losing by having your operating capital tied up in a bank account that is earning ½ percent instead of...

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Best Practices

Build Quality Jobs

Build Quality Jobs

Build Quality Jobs  Many contractors believe that building quality helps them sell more jobs and make more money. How do you define quality? Who sets the standard? To my knowledge, the only quality standard for construction is the NAHB Residential Construction Performance Guidelines manual. It is...

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Building Your Business

Establishing Work Hours

Establishing Work Hours

Establishing Work HoursSetting work hours is a responsibility usually associated with construction operations and job site management that the superintendent must attend to. The standard eight-to-four routine is not always the norm in the construction industry. Adjusting work hours to accommodate...

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The Power of Operating Capital

The Power of Operating Capital

The Power of Operating CapitalWith cash in the bank, you will be better able to resist the tendency to produce dangerously low estimates when work is slow. If you see your accounts nearly empty and realize that soon you will be unable to pay for your company’s insurance or pay yourself enough to...

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The Project Control Cycle

The Project Control Cycle

The Project Control CycleConstruction is a dynamic process, and no two projects are ever alike. Every job presents a new set of circumstances and challenges no matter how good a job you do preparing during the pre-construction stage. The project manager and superintendent work together to come up...

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Taxes, Tax Reports, and Payroll Services

Taxes, Tax Reports, and Payroll Services

Taxes, Tax Reports, and Payroll Services With time cards collected at the end of each pay period, employees' checks can be prepared. Those checks are for net wages. The amount that is left after hours worked is multiplied by wage and other income, social security, and other employment taxes are...

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