Indirect Overhead for Electrical Contractors

The list below are some common indirect overhead expenses for electrical contractors.

• Contractor Licensing fees - State of TN Electrical Contractor license is $250 biannually. The cost of doing business varies depending on the municipality.

• State & Local Business License Fees - in addition to the contractor license(s)

• Insurance

  • Building Insurance

  • Liability Insurance

  • Worker's Comp insurance

  • Employee Insurance

  • Life Insurance

  • Business Insurance

  • Auto Insurance

• Taxes

  • Employment taxes

  • Social Security Taxes

  • Medicare Taxes

  • Federal Income Tax

  • Property Taxes

  • Tangible Taxes

  • Sales Tax

• Training

  • Management Training

  • Office Training

  • In-House Training

  • Tech Training

  • Mfg. Training i.e. generators, EV chargers, GenerLink transfer switches, alarms/video surveillance systems, etc.

  • Training Equipment

  • College classes and degrees

  • Update classes

  • License testing

  • Safety Training

• Safety Equipment and Personal Protection Equipment (PPE)

  • Lock-out/Tag-out kits

  • Fall prevention harness

  • Arc-flash clothing

  • High voltage gloves

  • Hard hats

  • Safety glasses

  • Safety shoes

  • Hearing protection

• Staff Salary

  • Benefits

  • Employee 401ks and paid vacations

  • Vacation Pay

  • Holiday Pay

  • Unemployment

  • Bonuses

  • Retirement Plan

  • Christmas Party

• Uniforms

  • Initial cost & replacement

  • Uniform Maintenance

• Trade Association

  • Subscriptions

  • Memberships

  • Dues

• Advertising & Marketing

  • Business cards

  • Signs

  • Radio / TV

  • Newspaper

  • Flyers / brochures

  • Material Purchases

  • -Truck Signs / lettering / vinyl

• Legal

  • Legal Retainers

  • Legal documents

  • Legal advice

  • Incorporation / LLC fees

• Accounting/Financial

  • Bank Charges

  • 30+ Day Receivables

  • Tax Preparation

  • Loans

  • Interest

  • Credit card readers and processing fees

• Vehicles

  • Utility trucks

  • Box trucks

  • Boom trucks

  • Pickups

  • Ladder Racks

  • Interior bins

  • Fuel

  • Tires

  • Maintenance

• Travel

  • Hotel

  • Meals

  • Airline / vehicle

  • Fuel/tolls

• Tools

  • Company Tools

  • Consumables - drill bits, Sawzall blades, electrical tape, wire nuts, pipe threader dies, etc.

  • Tool Replacement

  • Ladders

  • Test Equipment

  • Welders

  • Replacement Parts

  • Parts Storage

  • Damages

  • Theft

• Job site storage

• Trips to Supply House

• Unbillable Hours

• Commissions

• Call Backs / Warranty work / Defective Equipment

• Shortages

• Delivery

• Drug Testing

• Inventory

• Cell phones

• Building

  • Utilities

  • Gas

  • Electricity

  • Warehouse Space

  • Trash Removal

  • Lawn Care

• Software

  • Accounting Software

  • Estimating and Bidding Software

  • Project Management Software

  • Customer Relations Software

• IT

  • Telephone / Fax lines

  • Computers

  • Computer maintenance and backups

• Internet service

  • Email accounts

  • Web site - domain registration, monthly website hosting fees

  • Initial creation

  • Updating

  • Permits

  • Bonds

  • Inspections

We optimally use our resources to keep our overhead low to reduce costs, refresh our inventories, and to provide exceptional service.

Service Calls 

Residential Estimates

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