General contractors are requiring greater transparency in the pricing and business models of their specialty contractors. SMACNA’s new members-only guide on establishing overhead and burden provides a clear and concise discussion surrounding the scope of services a sheet metal/HVAC contractor provides and how overhead and burden should be calculated.
Sheet metal and HVAC contractors are unique in the construction industry in that they engineer, manufacture, and install products made from raw materials. The scope of services provided by sheet metal contracts creates confusion and sometimes conflict with owners and general contractors who may not be familiar with the cost structure of a sheet metal/ HVAC contractor.
Establishing Overhead and Burden in a Sheet Metal Business is the latest addition to the Contractor Operations Manual. It describes, in detail, each type of overhead and burden and how to provide the added documentation the GC requires. The types of overhead and burden covered include traditional, spatial coordination, manufacturing, and installation.
SMACNA’s Contractor Operations Manual covers the nonfinancial aspects of operating a contracting business and is available free to SMACNA members only.
The collection of books currently in the Contractor Operations Manual include:
- Construction Contracts: Alternative Delivery Methods
- Establishing Overhead and Burden in a Sheet Metal Business
- Guideline to Information Technology
- Materials and Inventory Management
- Principles of Job Costing
- Personnel Policies and Procedures