Is it allowable to Charge Burden on Premium Time Portion of Work?

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CharleyTuna

New member
Location
Texas
I recently got into a discussion with a General Contractor who made a claim that I always took for granted and could not answer. He told me that I was not allowed to charge a burden percentage on my premium portion of my estimate(change order), he said only the straight time portion. example: 40 hours straight time 32% burden allowable. 40 hours at half time, no burden should be charged.

I am confused and a through explanation would be greatly apperciated

Thanks In Advance!
 
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petersonra

Senior Member
Location
Northern illinois
Occupation
engineer
CharleyTuna said:
I recently got into a discussion with a General Contractor who made a claim that I always took for granted and could not answer. He told me that I was not allowed to charge a burden percentage on my premium portion of my estimate(change order), he said only the straight time portion. example: 40 hours straight time 32% burden allowable. 40 hours at half time, no burden should be charged.

I am confused and a through explanation would be greatly apperciated

Thanks In Advance!
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it is dependant entirely on what the contract you signed with the guy says.

most contracts allow a certain amount of burden per hour, with no special burden for OT or holidays, etc. the reason for this is that the burden is the same to you regardless of whether the employee is paid straight time or OT.

but it is completely dependant on what the contract you signed says.

how can you not know something like this?
 
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JFletcher

Senior Member
Location
Williamsburg, VA
Whatever is in your contract. I got to the point where I required by contract change orders/additions to be paid in full before any work was started or materials ordered, and my change order rates were significantly higher (3-4x) than the per hour cost of the overall job.

Welcome to the forum
 
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