bidding questions

[khixxx]

I was wondering how everyone bids a job using their overhead. Do you bid your overhead in a percent,or hourly rate. I am doing my overhead as hourly rate. For example if I had $3000 overhead for the month of NOV. on 130 working hours. would you use $23hr for the month of dec. for overhead when doing a bid contract, and T&M, or would you calculate a different overhead price for bid work based on travel time,maybe a percent for different items such as overhead expences just for that bid. if you did a bid this way how would you know if you were going to make the quote for the monthly overhead expense.good records? please let me know how you do your overhead.I hope this makes sense.
thanks

 

[jimwalker]

Re: bidding questions

It's not easy to do.As a one man shop working from home your overhead is almost nothing.But at the point that your renting a building and hire a secretary then your basic over head is fixed.All you can do is average it out for a year.Best to be very busy and devide the cost between many jobs than just a few.Company i am with has at least 8 people that are just part of the overhead and then another 40 electricians,helpers.