As percentage of his annual business his general overhead expense would be 5%. Temporary Storage of Construction Materials. The general overhead costs included in the estimate for that project would then be $7,500. But one of the major variables is labor costs and how developed the land and natural objects including rocks in the ground and trees in the way. Some find it easier to add up your annual costs , and then divide by 12 to get your monthly expenses. By understanding and analysing these three critical figures you can begin to identify if you have a profitability issue, and if so where you need to focus your energies. Tagged with: construction markup • define general conditions • define overhead costs • general conditions • overhead costs of construction, About SWC The Common Method Is Almost Always Wrong. They can choose to divide all overhead costs for the previous fiscal year by the total direct job costs in the previous fiscal year. However, the idea of overhead and profit as we will be talking in this post relates to any project specific estimating business out there, especially in the field of construction. Overhead line construction can cost $10,000/mi to $250,000/mi, depending on the circumstances like area, load type, distance, and others. Examples include staffing, utilities, construction trailers, material cost, and more. However, the results show that only 48% of the contractors have 15% OH costs or less.