Super/PM

[Alwayslearningelec]

When do you guys include separate costs for PM and super for a job as opposed to including it in overhead.
I'm curious because I always include as a separate cost and it sometimes becomes costly. I think on smaller projects( under $100k) it would make sense to include in the overhead.

 

[sbirnbaum]

It depends on the following:
1. Does you overhead include PM? How was labor calculated?
2. Will this PM be dedicated to the project?
3. for smaller projects, how much will a non labor PM be on the job? Typically, smaller projects have a working foreman onsite that acts as the "PM"

 

[Alwayslearningelec]

It depends on the following:
1. Does you overhead include PM? How was labor calculated?
2. Will this PM be dedicated to the project?
3. for smaller projects, how much will a non labor PM be on the job? Typically, smaller projects have a working foreman onsite that acts as the "PM"

1. I'm not sure.
2. In some cases yes and some cases no. Most of the time they are running several jobs.

 

[petersonra]

When do you guys include separate costs for PM and super for a job as opposed to including it in overhead.
I'm curious because I always include as a separate cost and it sometimes becomes costly. I think on smaller projects( under $100k) it would make sense to include in the overhead.

You have to pay for the PM and the super somehow if they are used. IMO, it should be a separate line item in the project cost like other costs directly associated with the project.

If it becomes "costly" at least the owners of the business will know where they are spending their money.

Ultimately though, the business owners should be making this call.

 

[KD4315]

For us it's job specific. Many of our job's we're not allowed to charge for a Super or PM as it's considered OH. Some we are but it's an open book GMP job where we have to justify it. Either way we're burying that cost in the lump sum proposal and never exposing it.