Elevator subcontractors carry some of the highest overhead rates in commercial construction — driven by IUEC union fringe benefits, state licensing requirements, and the ongoing maintenance and service infrastructure that elevator contractors are expected to provide.
These benchmarks are drawn from SPM's work with commercial elevator 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.
Trade note for Elevator Contractors: Elevator contractors consistently show the highest overhead rates and highest gross margin targets in the benchmarks — reflecting the technical expertise, union fringe obligations, and licensing requirements that create significant barriers to entry in this trade. The premium margins justify the premium overhead.
International Union of Elevator Constructors fringe benefits — health, pension, annuity, vacation — represent the largest unique overhead component for union elevator contractors. Fringe rates vary by local and must be tracked at the elevator mechanic classification level.
Elevator contractors working in multiple states carry licensing overhead for each state's elevator regulatory program. Certificate of competency renewals, state-specific insurance requirements, and inspection coordination vary by jurisdiction.
Elevator contractors maintaining service contracts alongside installation work carry 24/7 response infrastructure, spare parts inventory, and service vehicle overhead that installation-only operations don't have.
IUEC fringe benefit rates are built into ControlQore job costing at the elevator mechanic classification level — not as a blended overhead percentage. Each local's fringe rates are tracked separately for contractors working across multiple IUEC locals.
State licensing fees, certificate renewals, and jurisdiction-specific compliance costs are tracked as a dedicated overhead category in ControlQore by state — supporting accurate bid pricing on multi-state elevator work.
For elevator contractors with both installation and service operations, SPM builds separate overhead rate tracking for each division — preventing 24/7 service response overhead from distorting installation division overhead benchmarking.
Find out in a free 30-minute call. Josh will tell you straight where your overhead rate stands and what to do about it.
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