BidMagic Construction Estimating Software-- Overhead & Profit

Overhead & Profit

NOTE-- We retired the BidMagic construction estimating software in 2001. It has been replaced by Goldenseal construction estimating software.

We still include this BidMagic estimating software manual as a convenience for users of our older program. Many features are similar, in Goldenseal estimating.

To enter Overhead and Profit percentages, choose Overhead from the Navigate menu.

The Overhead & Profit card handles three basic percentages--Overhead, Net Profit and Contingencies.
Overhead

Overhead is a percentage that you'll add on top of hard construction costs to cover advertising, office and bookkeeping costs, tools, equipment, and other 'indirect' costs. Overhead can be calculated as a percentage of hard costs, as a percentage of hard and soft costs combined, or as a percentage of the overall bid amount.

To enter an overhead percentage directly, turn off the Use Overhead Calculator button. To calculate the overhead percentage using your past business records, turn on the Use Overhead Calculator button, and fill in the information requested at the bottom of the card.

HINT: Overhead typically ranges from 10% to 25%.

Net Profit

Net Profit is the amount your business will make after all expenses and salaries are paid. Net profit typically ranges from 0% to 10%.

Contingencies

The contingencies percentage covers estimating mistakes, jobsite disasters, and other unexpected extra costs. It typically ranges from 2% to 10%, depending on the number of problems you anticipate having.