It is the cost of trucks and fuel, phones and computers, stationery and office salaries; it is every expense not tied directly to the cost of construction. Determine what percentage you must add to your estimates to cover overhead and add it to every job from the day you open for business.
Profit is the reward for running a business well:
There is nothing more fundamental in business than profit. Before you do anything else, learn what it is and how to charge for it and add it to every project. If a business is not making adequate profit, the owner is working for wages and would be better off taking a job with someone else and giving up the responsibility and the risk of being in business.
“To fail to provide for profit is to subvert all business logic, and to leave you, your employees, and your suppliers at risk.” Bob Hanbury
There is much more about overhead & profit in The Elements of Building.
EOB is available at Amazon.com
EOB is available at the online Garrett Wade Tool Company
PLEASE LIKE & SHARE THIS POST. THANK YOU