const cost & Bid project

Assumptions

Location: Its assumed that the building is located in Houston, Texas.

Annual Revenue: Its assumed that the company is looking for a total amount of $11,000,000 revenue per year.

Home office overhead costs

• The President salary its assumed similar to the book example, other employees’ salaries are based on average wage searched on indeed.com job offers. The number of employees and job positions are assumed as the necessary people to run a building construction as the provided drawings.

• 10 business travel over the year with a $600 budget. • Office supplies, office equipment, advertising, insurance and club dues costs are similar

as book example.

Job overheads

• Its assumed that the subcontractor bid costs includes its own requirements on: - Drinking water - Power - Portable toilets - Equipment rental - Heating in wintertime - Scaffolding - Removal of rubbish - Repairs and protection

• Field staff salaries are based on average wage searched on indeed.com job offers. • Temporary office, temporary facilities, utilities, cleaning, bonds, and insurance costs are

based on the online RS Means data. • The permit cost is based on a cost per SF from a Little Rock, AR, Building Construction

permit. The document was lent by a colleague who is working on that project. It is assuming that the complete construction is 4268 SF including the building and the parking lot.

• The pick-up truck cost for month leasing is based on a Toyota Tacoma leasing plan, obtained from the Toyota.com web page.

• Repairs and protection are expected to be include on all subcontractors’ bids, and that the construction will be carried out in a land without sidewalks or built streets.

Indirect Cost

Indirect Field Staff

Home Office Costs

Estimate Summary