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Construction Industry Audit Technique Guide (ATG) - Chapter 11

Construction Industry Audit Technique Guide (ATG) - Chapter 11 Division 10 - Installing Contractor’s Overhead and Profit

Publication Date - May 2009

NOTE: This document is not an official pronouncement of the law or the position of the Service and can not be used, cited, or relied upon as such. This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date.

Division 10 - Installing Contractor's Overhead & Profit

Below are the average installing contractor's percentage markups applied to base labor rated to arrive at typical billing rates.

Column A:

Labor rates are based on average open shop wages for 7 major U.S. regions. Base rates, including fringe benefits, are listed hourly and daily. These figures are the sum of the wage rated and employer-paid fringe benefits such as vacation pay and employer-paid health costs.

Column B:

Workers' Compensation rates are the national average of state rates established for each trade.

Column C:

Average fixed overhead figures for all trades. Included are Federal and State Unemployment costs set at 6.2%; Social Security Taxes (FICA) set at 7.65%; Builder's Risk Insurance costs set at 0.44%; and Public Liability costs set at 2.02%. All the percentages, except those for Social Security Taxes, vary from state to state as well as from company to company.

Column D and E:

Percentages are based on the presumption that the installing contractor has annual billing of $2,000,000 and up. Overhead percentages may increase with smaller annual billing. The overhead percentages for any given contractor may vary greatly and depend on a number of factors such as the contractor's annual volume, engineering and logistical support costs, and staff requirements. The figures for overhead and profit will vary depending on the type of job, the job location, and the prevailing economic conditions. All factors should be examined very carefully for each job.

Column F:

Lists the total of Columns B, C, D and E.

Column G:

Column A (hourly base labor rate) multiplied by the percentage in

Column F:

(O&P percentage).

Column H:

The total of Column A (hourly base labor rate) plus Column G (Total O&P).

Column I:

Column H multiplied by eight hours.

To adjust these costs to a specific location, simply multiply the cost by the factor for that city. State and postal zip code numbers arrange the data alphabetically. For a city not listed, use the factor for a nearby city with similar economic characteristics. Refer to Location Factors section of this chapter.

 

Construction Trade Worker Classification Titles:
Number Trade Construction Worker Classification Titles

1

Asbestos/Insulation/Pipe Coverers

2

Boilermakers

3

Bricklayers

4

Bricklayer Helpers

5

Carpenters

6

Cement Finishers

7

Common Laborers

8

Electricians

9

Elevator Constructors

10

Equipment Operators Crane or Shovel

11

Equipment Operators Medium Equipment

12

Equipment Operators Light Equipment

13

Equipment Operators Oilers

14

Equipment Operators Master Mechanic

15

Foreman Inside

16

Foreman Outside

17

Glazers

18

Helpers

19

Lathers

20

Marble Setters

21

Millwrights

22

Mosaic & Terrazzo Workers

23

Painters Ordinary

24

Painters Structural Steel

25

Paper Hangers

26

Pile Drivers

27

Plasterers

28

Plasterer Helpers

29

Plumbers

30

Rodmen Reinforcing

31

Roofers Composition

32

Roofers Tile & Slate

33

Roofers Helpers Composition

34

Sheet Metal Workers

35

Skilled Workers

36

Sprinkler Installers

37

Steamfitters or Pipefitters

38

Stone Masons

39

Structural Steel Workers

40

Tile Layers

41

Tile Layers Helpers

42

Truck Drivers Light

43

Truck Drivers Heavy

44

Welders Structural Steel

45

Wrecking (Not Included In Averages)

 

 

 

Installing Contractor's Overhead and Profit
# A
Hourly Base Rate Incl. Fringes
A
Daily Base Rate Incl. Fringes
B
Workers' Comp. Ins.
C
Average Fixed Overhead
D
Overhead
E
Profit
F
Total Overhead & Profit %
G
Total Overhead & Profit Amount
H
Hourly Rates With Overhead & Profit
I
Daily Rates With Overhead & Profit

1

$27.40

$219.20

15.8%

16.3%

30.0%

10.0%

72.1%

$19.75

$47.15

$377.20

2

$31.10

$248.80

12.7%

16.3%

30.0%

10.0%

69.0%

$21.45

$52.55

$420.40

3

$26.65

$213.20

14.9%

16.3%

25.0%

10.0%

66.2%

$17.65

$44.30

$354.40

4

$20.05

$160.40

14.9%

16.3%

25.0%

10.0%

66.2%

$13.25

$33.30

$266.40

5

$25.70

$205.60

18.4%

16.3%

25.0%

10.0%

69.7%

$17.90

$43.60

$348.80

6

$24.90

$199.20

9.6%

16.3%

25.0%

10.0%

60.9%

$15.15

$40.05

$320.40

7

$18.70

$149.60

18.4%

16.3%

25.0%

10.0%

69.7%

$13.05

$31.75

$254.00

8

$29.40

$235.20

6.6%

16.3%

30.0%

10.0%

62.9%

$18.50

$47.90

$383.20

9

$35.80

$286.40

6.9%

16.3%

30.0%

10.0%

63.2%

$22.65

$58.45

$467.60

10

$27.45

$219.60

10.4%

16.3%

28.0%

10.0%

64.7%

$17.75

$45.20

$361.60

11

$26.50

$212.00

10.4%

16.3%

28.0%

10.0%

64.7%

$17.15

$43.65

$349.20

12

$25.45

$203.60

10.4%

16.3%

28.0%

10.0%

64.7%

$16.45

$41.90

$335.20

13

$23.40

$187.20

10.4%

16.3%

28.0%

10.0%

64.7%

$15.15

$38.55

$308.40

14

$27.65

$221.20

10.4%

16.3%

28.0%

10.0%

64.7%

$17.90

$45.55

$364.40

15

$26.60

$212.80

16.3%

16.3%

27.0%

10.0%

69.6%

$18.50

$45.10

$360.80

16

$28.10

$224.80

16.3%

16.3%

27.0%

10.0%

69.6%

$19.55

$47.65

$381.20

17

$25.60

$204.80

14.1%

16.3%

25.0%

10.0%

65.4%

$16.75

$42.35

$338.80

18

$18.80

$150.40

17.8%

16.3%

25.0%

10.0%

69.1%

$13.00

$31.80

$254.00

19

$23.60

$188.80

11.6%

16.3%

25.0%

10.0%

62.9%

$14.85

$38.45

$307.60

20

$25.35

$202.80

14.9%

16.3%

25.0%

10.0%

66.2%

$16.80

$42.15

$337.20

21

$26.75

$214.00

10.2%

16.3%

25.0%

10.0%

61.5%

$16.45

$43.20

$345.60

22

$24.60

$196.80

9.5%

16.3%

25.0%

10.0%

60.8%

$14.95

$39.55

$316.40

23

$23.20

$185.60

13.2%

16.3%

25.0%

10.0%

64.5%

$14.95

$38.15

$305.20

24

$23.80

$190.40

45.3%

16.3%

25.0%

10.0%

96.6%

$23.00

$46.80

$374.40

25

$23.35

$186.80

13.2%

16.3%

25.0%

10.0%

64.5%

$15.05

$38.40

$307.20

26

$25.15

$201.20

21.4%

16.3%

30.0%

10.0%

77.7%

$19.55

$44.70

$357.60

27

$23.50

$188.00

14.0%

16.3%

25.0%

10.0%

65.3%

$12.35

$38.85

$310.80

28

$20.15

$161.20

14.0%

16.3%

25.0%

10.0%

65.3%

$13.15

$33.30

$266.40

29

$29.55

$236.40

8.1%

16.3%

30.0%

10.0%

64.4%

$19.05

$48.60

$388.80

30

$27.65

$221.20

23.8%

16.3%

28.0%

10.0%

78.1%

$21.60

$49.25

$394.00

31

$21.95

$175.60

32.3%

16.3%

25.0%

10.0%

83.6%

$18.35

$40.30

$322.40

32

$22.05

$176.40

32.3%

16.3%

25.0%

10.0%

83.6%

$18.45

$40.50

$324.00

33

$16.10

$128.80

32.3%

16.3%

25.0%

10.0%

83.6%

$13.45

$29.55

$236.40

34

$28.75

$230.00

11.9%

16.3%

30.0%

10.0%

68.2%

$19.60

$48.35

$386.80

35

$26.10

$208.80

16.3%

16.3%

27.0%

10.0%

69.6%

$18.15

$44.25

$354.00

36

$29.25

$234.00

8.3%

16.3%

30.0%

10.0%

64.6%

$18.90

$48.15

$385.20

37

$29.85

$238.80

8.1%

16.3%

30.0%

10.0%

64.4%

$19.20

$49.05

$392.40

38

$26.05

$208.40

14.9%

16.3%

25.0%

10.0%

66.2%

$17.25

$43.30

$346.40

39

$27.70

$221.60

40.8%

16.3%

28.0%

10.0%

95.1%

$26.35

$54.05

$432.40

40

$24.85

$198.80

9.5%

16.3%

25.0%

10.0%

60.8%

$15.10

$39.95

$319.60

41

$19.10

$152.80

9.5%

16.3%

25.0%

10.0%

60.8%

$11.60

$30.70

$245.60

42

$20.25

$162.00

17.1%

16.3%

25.0%

10.0%

68.4%

$13.85

$34.10

$272.80

43

$21.00

$168.00

17.1%

16.3%

25.0%

10.0%

68.4%

$14.35

$35.35

$282.80

44

$27.70

$221.60

40.8%

16.3%

28.0%

10.0%

95.1%

$26.35

$54.05

$432.40

45

$19.25

$154.00

39.1%

16.3%

25.0%

10.0%

90.4%

$17.40

$36.65

$293.20

 

Location Factors

Costs shown in RSMeans Cost Data Publications are based on National Averages for materials and installation. To adjust these costs to a specific location, simply multiply the base cost by the factor for that city. State and postal zip code numbers arrange the data alphabetically. For a city not listed, use the factor for a nearby city with similar economic characteristics.

 

United States:
State Zip Code City Factor

Alabama

350-352

Birmingham

0.86

Alabama

354

Tuscaloosa

0.73

Alabama

355

Jasper

0.71

Alabama

356

Decatur

0.76

Alabama

357-358

Huntsville

0.84

Alabama

359

Gadsden

0.73

Alabama

360-361

Montgomery

0.75

Alabama

362

Anniston

0.68

Alabama

363

Dothan

0.74

Alabama

364

Evergreen

0.70

Alabama

365-366

Mobile

0.79

Alabama

367

Selma

0.72

Alabama

368

Phenix City

0.73

Alabama

369

Butler

0.71

Alaska

995-996

Anchorage

1.27

Alaska

997

Fairbanks

1.29

Alaska

998

Juneau

1.27

Alaska

999

Ketchikan

1.29

Arizona

850-853

Phoenix

0.86

Arizona

852

Mesa/Tempe

0.83

Arizona

855

Globe

0.79

Arizona

856-857

Tucson

0.84

Arizona

859

Show Low

0.81

Arizona

860

Flagstaff

0.86

Arizona

863

Prescott

0.81

Arizona

864

Kingman

0.83

Arizona

865

Chambers

0.80

Arkansas

716

Pine Bluff

0.81

Arkansas

717

Camden

0.70

Arkansas

718

Texarkana

0.75

Arkansas

719

Hot Springs

0.70

Arkansas

720-722

Little Rock

0.87

Arkansas

723

West Memphis

0.81

Arkansas

724

Jonesboro

0.79

Arkansas

725

Batesville

0.76

Arkansas

726

Harrison

0.78

Arkansas

727

Fayetteville

0.72

Arkansas

728

Russellville

0.77

Arkansas

729

Fort Smith

0.79

California

900-902

Los Angeles

1.06

California

903-905

Inglewood

1.05

California

906-908

Long Beach

1.04

California

910-912

Pasadena

1.05

California

913-916

Van Nuys

1.08

California

917-917

Alhambra

1.09

California

919-921

San Diego

1.04

California

922

Palm Springs

1.04

California

923-924

San Bernardino

1.05

California

925

Riverside

1.05

California

926-927

Santa Ana

1.06

California

928

Anaheim

1.05

California

930

Oxnard

1.07

California

931

Santa Barbara

1.06

California

932-933

Bakersfield

1.03

California

934

San Luis Obispo

1.08

California

935

Mojave

1.06

California

936-938

Fresno

1.09

California

939

Salinas

1.12

California

940-941

San Francisco

1.23

California

942,956-958

Sacramento

1.11

California

943

Palo Alto

1.18

California

944

San Mateo

1.22

California

945

Vallejo

1.15

California

946

Oakland

1.21

California

947

Berkeley

1.24

California

948

Richmond

1.24

California

949

San Rafael

1.22

California

950

Santa Cruz

1.15

California

951

San Jose

1.19

California

952

Stockton

1.09

California

953

Modesto

1.08

California

954

Santa Rosa

1.16

California

955

Eureka

1.12

California

959

Marysville

1.10

California

960

Redding

1.10

California

961

Susanville

1.09

Colorado

800-802

Denver

0.94

Colorado

803

Boulder

0.93

Colorado

804

Golden

0.91

Colorado

805

Fort Collins

0.9

Colorado

806

Greeley

0.80

Colorado

807

Fort Morgan

0.93

Colorado

808-809

Colorado Springs

0.90

Colorado

810

Pueblo

0.91

Colorado

811

Alamosa

0.88

Colorado

812

Salida

0.90

Colorado

813

Durango

0.91

Colorado

814

Montrose

0.87

Colorado

815

Grand Junction

0.92

Colorado

816

Glenwood Springs

0.90

Connecticut

060

New Britain

1.08

Connecticut

061

Hartford

1.08

Connecticut

062

Willimantic

1.08

Connecticut

063

New London

1.08

Connecticut

064

Meriden

1.08

Connecticut

065

New Haven

1.08

Connecticut

066

Bridgeport

1.09

Connecticut

067

Waterbury

1.09

Connecticut

068

Norwalk

1.09

Connecticut

069

Stanford

1.10

District of Columbia

200-205

Washington

0.95

Delaware

197

Newark

0.99

Delaware

198

Wilmington

1.00

Delaware

199

Dover

0.99

Florida

320-322

Jacksonville

0.77

Florida

321

Daytona Beach

0.84

Florida

323

Tallahassee

0.73

Florida

324

Panama City

0.67

Florida

325

Pensacola

0.78

Florida

326-344

Gainesville

0.77

Florida

327-328,347

Orlando

0.84

Florida

329

Melbourne

0.86

Florida

330-332,340

Miami

0.85

Florida

333

Fort Lauderdale

0.84

Florida

334,349

West Palm Beach

0.84

Florida

335-336,346

Tampa

0.86

Florida

337

St Petersburg

0.76

Florida

338

Lakeland

0.83

Florida

339,341

Fort Myers

0.80

Florida

342

Sarasota

0.84

Georgia

300-303,399

Atlanta

0.90

Georgia

304

Statesboro

0.71

Georgia

305

Gainesville

0.79

Georgia

306

Athens

0.79

Georgia

307

Dalton

0.75

Georgia

308-309

Augusta

0.81

Georgia

310-312

Macon

0.82

Georgia

313-314

Savannah

0.82

Georgia

315

Waycross

0.76

Georgia

316

Valdosta

0.73

Georgia

317,398

Albany

0.79

Georgia

318-319

Columbus

0.83

Hawaii

967

Hilo

1.21

Hawaii

968

Honolulu

1.23

Idaho

832

Pocatello

0.86

Idaho

833

Twin Falls

0.74

Idaho

834

Idaho Falls

0.75

Idaho

835

Lewiston

0.96

Idaho

836-837

Boise

0.87

Idaho

838

Coeur d'Alene

0.94

Illinois

600-603

North Suburban

1.10

Illinois

604

Joliet

1.10

Illinois

605

South Suburban

1.10

Illinois

606-608

Chicago

1.16

Illinois

609

Kankakee

1.00

Illinois

610-611

Rockford

1.04

Illinois

612

Rock Island

0.96

Illinois

613

La Salle

1.02

Illinois

614

Galesburg

0.99

Illinois

615-616

Peoria

0.98

Illinois

617

Bloomington

0.98

Illinois

618-619

Champaign

0.99

Illinois

620-622

East St Louis

1.00

Illinois

623

Quincy

0.98

Illinois

624

Effingham

0.96

Illinois

625

Decatur

0.97

Illinois

626-627

Springfield

0.97

Illinois

628

Centralia

1.00

Illinois

629

Carbondale

0.95

Indiana

460

Anderson

0.91

Indiana

461-462

Indianapolis

0.95

Indiana

463-464

Gary

1.01

Indiana

465-466

South Bend

0.91

Indiana

467-468

Fort Wayne

0.91

Indiana

469

Kokomo

0.92

Indiana

470

Lawrenceburg

0.87

Indiana

471

New Albany

0.86

Indiana

472

Columbus

0.92

Indiana

473

Muncie

0.91

Indiana

474

Bloomington

0.94

Indiana

475

Washington

0.91

Indiana

476-477

Evansville

0.90

Indiana

478

Terre Haute

0.90

Indiana

479

Lafayette

0.91

Iowa

500-503,509

Des Moines

0.91

Iowa

504

Mason City

0.77

Iowa

505

Fort Dodge

0.76

Iowa

506-507

Waterloo

0.79

Iowa

508

Creston

0.81

Iowa

510-511

Sioux City

0.87

Iowa

512

Sibley

0.73

Iowa

513

Spencer

0.74

Iowa

514

Carroll

0.74

Iowa

515

Council Bluffs

0.81

Iowa

516

Shenadoah

0.75

Iowa

520

Dubuque

0.86

Iowa

521

Decorah

0.76

Iowa

522-524

Cedar Rapids

0.94

Iowa

525

Ottumwa

0.84

Iowa

526

Burlington

0.87

Iowa

527-528

Davenport

0.97

Kansas

660-662

Kansas City

0.99

Kansas

664-666

Topeka

0.80

Kansas

667

Fort Scott

0.85

Kansas

668

Emporia

0.72

Kansas

669

Belleville

0.78

Kansas

670-672

Wichita

0.80

Kansas

673

Independence

0.85

Kansas

674

Salina

0.76

Kansas

675

Hutchinson

0.77

Kansas

676

Hays

0.82

Kansas

677

Colby

0.83

Kansas

678

Dodge City

0.82

Kansas

679

Liberal

0.79

Kentucky

400-402

Louisville

0.92

Kentucky

403-405

Lexington

0.89

Kentucky

406

Frankfort

0.89

Kentucky

407-409

Corbin

0.78

Kentucky

410

Covington

1.00

Kentucky

411-412

Ashland

0.98

Kentucky

413-414

Campton

0.79

Kentucky

415-416

Pikeville

0.86

Kentucky

417-418

Hazard

0.73

Kentucky

420

Paducah

0.90

Kentucky

421-422

Bowling Green

0.90

Kentucky

423

Owensboro

0.89

Kentucky

424

Henderson

0.91

Kentucky

425-426

Somerset

0.78

Kentucky

427

Elizabethtown

0.87

Louisiana

700-701

New Orleans

0.86

Louisiana

703

Thibodaux

0.84

Louisiana

704

Hammond

0.79

Louisiana

705

Lafayette

0.82

Louisiana

706

Lake Charles

0.83

Louisiana

707-708

Baton Rouge

0.82

Louisiana

710-711

Shreveport

0.79

Louisiana

712

Monroe

0.74

Louisiana

713-714

Alexandria

0.74

Maine

039

Kittery

0.79

 

040-041

Portland

0.90

Maine

042

Lewiston

0.89

Maine

043

Augusta

0.82

Maine

044

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0.88

Maine

045

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0.80

Maine

046

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0.81

Maine

047

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0.85

Maine

048

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0.81

Maine

049

Waterville

0.80

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Page Last Reviewed or Updated: 25-Aug-2014