Electrical contractors are unique in the construction industry in that they engineer, install and integrate products made from both commodities and engineered materials. The scope of services provided by electrical contractors creates confusion and sometimes conflict with owners and general contractors who may not be familiar with the cost structure of an electrical contractor. The purpose of this presentation is to detail the various types of expenses incurred by an electrical contractor in support of a proper determination of overhead and burden rates. The objective is to provide a clear and concise discussion surrounding the scope of services provided by the electrical contractor and thus how overhead and burden should be calculated.
Following this course, participants will be able to:
• Understand the impact of fixed and variable costs on burdens
• Differentiate between overhead burden, engineering/fabrication burdens, and field burdens
• Calculate overhead, engineering/fabrication, and field burdens separately