https://www.foundationacs.com
In this episode of the Contractors Profit Hack Show, Jeremy Lott from Foundation Accounting and Consulting elaborates on the process of bidding a job. He covers how to allocate overhead costs such as insurance, cell phones, and vehicle expenses across multiple jobs to ensure accurate pricing. Using a personal anecdote, Jeremy explains the importance of spreading out costs evenly. He provides a detailed method to connect indirect costs to direct costs like labor, materials, and subcontractors. This ensures each job covers a fair portion of the overhead, resulting in more accurate bids and better profit margins.
00:00 Introduction to Bidding
01:02 Understanding Direct and Indirect Costs
04:54 Allocating Overhead Costs
06:33 Calculating Allocation Rates
12:15 Applying Allocation Rates to Bids
14:35 Conclusion and Next Steps
