OVERHEAD BENCHMARKSELECTRICAL CONTRACTORS$1M TO $500M+REVENUE BAND DATAGROSS MARGINNET MARGINOVERHEAD RATEOVERHEAD BENCHMARKSELECTRICAL CONTRACTORS$1M TO $500M+REVENUE BAND DATAGROSS MARGINNET MARGINOVERHEAD RATE
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Electrical Contractors · Commercial · Industrial · Institutional — Overhead Rate Benchmarks — By Revenue Band

Electrical Contractor
Overhead Rate.

Electrical subcontractors consistently carry some of the highest overhead rates in the specialty trade sector — driven by licensing requirements, technical expertise in estimating and PM roles, and engineering coordination overhead.

Overhead Benchmarks — Electrical Contractors — By Revenue Band

What Normal Looks Like
At Your Revenue Level.

These benchmarks are drawn from SPM's work with commercial electrical contractors and industry data. Calculate your actual overhead rate — total G&A expenses divided by total revenue for the trailing 12 months — and compare to your revenue band below.

How to use this data: If you're above the top of the range, specific categories need review. If you're below the bottom, you may be underinvesting in systems and staff. Use the benchmark as a target range, not a single number.

$1M – $5M
Overhead Rate
14–20%
Gross Margin Target
20–28%
Net Margin Target
6–8%
Largest Overhead Driver
Licensing and owner overhead
Small electrical firms carry proportionally high licensing cost and owner technical overhead.
$5M – $10M
Overhead Rate
12–18%
Gross Margin Target
22–29%
Net Margin Target
7–9%
Largest Overhead Driver
Estimating staff
Electrical estimating requires technical expertise — qualified estimators command higher compensation than most other trades.
$10M – $25M
Overhead Rate
11–16%
Gross Margin Target
23–30%
Net Margin Target
7–10%
Largest Overhead Driver
Engineering coordination
Submittals, RFIs, and engineering coordination staff add PM overhead at mid-scale.
$25M – $50M
Overhead Rate
10–14%
Gross Margin Target
24–31%
Net Margin Target
8–11%
Largest Overhead Driver
PM infrastructure
Multiple PMs managing complex electrical scopes on large commercial and industrial projects.
$50M – $100M
Overhead Rate
9–13%
Gross Margin Target
25–32%
Net Margin Target
9–12%
Largest Overhead Driver
Safety and training
Formal electrical safety programs, NFPA compliance, and continuing education requirements.
$100M – $500M
Overhead Rate
8–11%
Gross Margin Target
26–33%
Net Margin Target
10–13%
Largest Overhead Driver
Corporate overhead
Multi-region operations with service and construction divisions.
$500M+
Overhead Rate
7–10%
Gross Margin Target
27–34%
Net Margin Target
11–14%
Largest Overhead Driver
Finance and legal
Large corporate overhead spread across significant revenue base.

Trade note for Electrical Contractors: Electrical contractors consistently show the highest overhead rates among specialty trades — justified by the technical expertise required at every organizational level. The overhead rate benchmark for electrical reflects the reality that qualified electrical estimators, PMs, and field supervisors all command higher compensation than equivalent roles in less technical trades.

Why Overhead Rate Gets Off Track

Three Reasons Your
Overhead Is Drifting.

01

Technical Staff Cost Outpaces Revenue Growth

Licensed electricians moving into PM and estimating roles command $80K–$130K. When these hires don't immediately generate proportional revenue — which they often don't in the first 6–12 months — overhead rate climbs before the investment pays off.

02

Engineering Coordination Gets Coded Wrong

Submittal preparation, RFI management, and engineering coordination for specific projects are direct job costs. When project-specific engineering work gets coded to general overhead, overhead is overstated and job margins are understated.

03

Licensing and Compliance Overhead Is Underestimated

State licensing fees, continuing education, bond renewals, insurance certificates, and compliance documentation represent real overhead that's often missed or underestimated in overhead rate calculations.

How SPM Manages It

Overhead Rate as a
Managed Number.

Classification-Level Overhead Tracking

SPM separates field supervision, PM, and estimating overhead in ControlQore so you know exactly which staff category is driving overhead rate changes. Technical staff costs are tracked at the classification level — not lumped into a single payroll overhead line.

Project Engineering Cost to Jobs

Submittal preparation and RFI management for specific projects is coded to those jobs in ControlQore — not to overhead. As-built documentation, shop drawing review, and engineering coordination for specific scopes are direct job costs.

Electrical Benchmark Comparison Monthly

Your overhead rate is compared to the electrical contractor benchmark for your revenue band monthly — not a generic specialty trade average. Electrical overhead norms are higher than most trades and your benchmark reflects that reality.

Service Tiers

Two Ways to
Work With SPM.

Core Financial
From $1,900/mo
  • ControlQore setup and management
  • Job costing aligned to your estimates
  • Bookkeeping and bank reconciliations
  • AR and AP management
  • Monthly overhead rate tracking
  • 1 monthly CFO meeting
  • 60-day onboarding
Executive Financial
From $2,900/mo
  • Everything in Core Financial
  • Monthly WIP schedule
  • 13-week cash flow forecast
  • CEO Report and financial dashboard
  • 3 monthly CFO advisory meetings
  • Overhead rate vs. benchmark monthly
  • Direct access to Josh
Common Questions

Straight Answers.

How do I calculate my overhead rate?
Add up every expense that isn't a direct job cost for the trailing 12 months — office staff, rent, insurance, equipment payments not allocated to jobs, vehicles, software, marketing. Divide by total revenue for the same period. That percentage is your overhead rate. Compare it to the benchmark for your revenue band above.
Does SPM serve electrical contractors at all revenue levels?
SPM's direct engagement covers $1M–$12M in revenue. The benchmark data on this page covers the full revenue spectrum for reference. For contractors above $12M, SPM can make the right introduction to firms that specialize at larger scale.

IS YOUR OVERHEAD
IN RANGE?

Find out in a free 30-minute call. Josh will tell you straight where your overhead rate stands and what to do about it.

Schedule a Free Call →
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