Estimating for Company Overhead and Margin

Company Overhead and Margin provides industry-standard options to calculate your company costs and profits.  

Estimate for overhead and margin

  1. In an open estimate, click on the Company Overhead & Margin category name to go to that sheet in the estimate.

  2. For each applicable subcategory, Select an estimating method.

Use the Lump Sum estimating method if you want to estimate using a fixed dollar amount for overhead and margin.

Use the Detailed estimating method if you want to calculate overhead and margin based on a percentage.

  1. Enter costs for overhead and margin.

If you are using the lump sum method, enter a dollar amount in the Total Price column.

If you are using the detailed method, enter a percentage in the Percent column and select either Percent Margin or Percent of Costs from the Unit drop-down menu.

NOTE: Percent Margin is the industry-recommended method that will provide you with a true margin on the grand total. This unit will calculate your percentage on the cost of the entire project, including figures entered on the Company Overhead and Margin sheet. For example, if your project costs $100,000, a 10% overhead using the Percent Margin unit would produce $11,111.11 for your overhead. This number is derived by dividing the costs by (1 minus the percentage). Percent of Costs only provides a percentage on the subtotal of the project. Using the example above, a 10% overhead on a $100,000 project using the Percent of Costs unit would only provide $10,000 for overhead expenses. This number is derived by multiplying the subtotal cost by the percentage.  

Insert a subcategory on the Company Overhead and Margin sheet

The Company Overhead and Margin sheet includes these subcategories: Company Overhead, Company Margin, and Contingency. You can add up to two subcategories.

  1. To add a subcategory, click the [add subcategory] link. A new subcategory will be added.

  2. You can rename the new subcategory by clicking on the subcategory name and typing a new name.

Insert Company Overhead and Margin sheet

If you deleted your Company Overhead and Margin sheet, you can easily insert a new one.

  1. Go to Insert > Insert Overhead and Margin Sheet.

  2. A Company Overhead and Margin sheet will be inserted into your estimating workbook. The sheet will include these subcategories: Company Overhead, Company Margin, and Contingency.