OVERHEAD RATE FOR FRAMING CONTRACTORS — WHAT IT SHOULD BE.
The target overhead rate for framing contractors doing $2M–$8M is 10–14%. Framing is a labor-intensive trade with relatively low equipment overhead — but tool management, crew scheduling complexity on multi-building projects, and takeoff and estimating cost create overhead that most framing contractors absorb informally. Most who calculate their real overhead rate for the first time find it 3–5 points above what they have been bidding.
Framing overhead is driven by labor management complexity. Multiple crews, multiple buildings, multiple GC relationships, and the material takeoff burden at bid time all create overhead that belongs in the rate.
OVERHEAD BENCHMARKS FOR FRAMING CONTRACTORS.
Framing contractors at $1M–$2M may run 13–16% overhead as fixed costs are spread over a smaller base. At $5M+, overhead should be in the 10–12% range. Framing overhead tends to be lower than equipment-heavy trades but higher than most contractors estimate informally.
THE LINE ITEMS THAT PUSH FRAMING OVERHEAD ABOVE TARGET.
Tool and Equipment Management
Nail guns, compressors, saws, staging — framing contractors own significant tool inventory that is not always tracked or charged to projects at a daily rate. Tool replacement, maintenance, and storage belong in overhead. A framing contractor running $3M in revenue may carry $40,000–60,000 in tool inventory with $8,000–15,000 in annual replacement and maintenance.
Multi-Crew Scheduling and Coordination
Framing contractors running 4–8 crews simultaneously on different buildings or projects require significant scheduling infrastructure. The foreman or office coordinator time spent on crew scheduling, material delivery coordination, and building sequence management is administrative overhead — not a direct job cost on any individual project.
Takeoff and Estimating Cost
Commercial framing bids require detailed material takeoffs — linear feet of lumber, panel counts, hardware quantities. The estimator or owner time spent on takeoffs belongs in overhead as a real cost of winning work. At a $3M framing company submitting 60–80 bids per year, estimating overhead can run $30,000–60,000 annually in owner or estimator time.
ONE SITTING. REAL NUMBER.
Free calculator: The CFOS overhead rate calculator walks through every line item and produces your real rate in about 10 minutes at constructioncfo.net/construction-overhead-rate-calculator-interactive
FREQUENTLY ASKED.
WHAT IS YOUR REAL FRAMING OVERHEAD RATE?
A 30-minute diagnostic will calculate it and show you exactly which line items are driving it above target.
BOOK A FREE 30-MIN DIAGNOSTIC →30 minutes. Free. No sales pressure.
OR CALCULATE IT YOURSELF → FREE OVERHEAD RATE CALCULATOR