Indirect Overhead for Electrical Contractors:  

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

• Permits

• Bonds

• Inspections

• Contractor Licensing fees - State of TN Electrical Contractor license is $250 biannually. For the City of Knoxville, it is $330 annually. 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

• -Training Equipment

• -Update classes

• -License testing

• -Safety Training

• Safety Equipment and Personal Protection Equipment (PPE)

• -Lock-out/Tag-out kits

• -Fall prevention harness

• -Arc-flash clothing

• -Hard hats

• -Safety glasses

• -Hearing protection

• Staff Salary

• -Benefits

• -Employee 401ks and paid vacations

• -Vacation Pay

• -Holiday Pay

• -Unemployment

• -Bonuses

• -Retirement Plan

• Christmas Party

• Uniforms

• Uniform Maintenance

• Trade Association

• Subscriptions

• Memberships

• Dues

• Retainers

• Advertising

• Marketing

• Business cards

• Signs

• Radio / TV

• Newspaper

• Flyers / brochures

• Material Purchases

• Legal documents

• Legal advice

• Incorporation / LLC fees

• Financial

• Bank Charges

• 30+ Day Receivables

• Accounting

• Tax Preparation

• Loans

• Interest

• Vehicles

• -Utility trucks

• -Box trucks

• -Boom trucks

• -Ladder Racks

• -Interior bins

• -Fuel

• -Truck Signs / lettering / vinyl

• -Tires

• -Maintenance

• Travel

• -Hotel

• -Meals

• -Airline / vehicle

• 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

• Job site storage

• Trips to Supply House

• Theft

• Unbillable Hours

• Commissions

• Call Backs / Warranty work / Defective Equipment

• Shortages

• Delivery

• Credit Card Sales

• Drug Testing

• Inventory

• Cell phones

• Building

• Utilities

• Gas

• Electricity

• Warehouse Space

• Trash Removal

• Lawn Care

• Telephone / Fax lines

• Computers

• Computer maintenance and backups

• Software

• -Accounting Software

• -Estimating and Bidding Software

• -Project Management Software

• -Customer Relations Software

• IT

• Internet service

• Email accounts

• Web site - done in-house, domain registration, monthly Google Workspace fees

• -Initial creation

• -Updating

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

Residential Estimates

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