OVERHEAD RATE FOR MASONRY CONTRACTORS — WHAT IT SHOULD BE.
The target overhead rate for masonry contractors doing $2M–$8M is 10–14% of revenue. Most are running higher without knowing it because the rate has never been formally calculated — or owner salary is not included at market rate. Every point of gap between bid rate and real rate is unrecovered overhead coming directly out of net profit on every project.
Overhead rate is not a number you guess at or borrow from a trade association chart. It is calculated from your specific fixed costs divided by your specific revenue. The benchmark range gives you a target. Your real number tells you whether you are on track, elevated, or structurally underpricing every bid you submit.
WHAT OVERHEAD SHOULD LOOK LIKE FOR MASONRY CONTRACTORS.
These benchmarks apply to commercial masonry subcontractors doing $1M–$12M. The range tightens as revenue scales — a $1.5M contractor may run 14–16% overhead as fixed costs are spread over a smaller revenue base, while an $8M contractor should be in the 10–12% range.
THE LINE ITEMS THAT PUSH MASONRY OVERHEAD ABOVE TARGET.
Scaffold Inventory and Maintenance
Masonry contractors own significant scaffold inventory — frame scaffold, mast climbers, cantilever systems. Maintenance, storage, and replacement costs for scaffold not being charged to projects at a rental rate sits in overhead. A contractor with $300,000 in scaffold inventory on 10-year replacement cycles carries $30,000/year in scaffold overhead before maintenance.
Mortar Equipment and Batch Plant
Contractors with owned batch plants, mixer trucks, or pump systems carry equipment overhead often not fully captured in job cost rates. Many masonry contractors set equipment rates based on fuel and operator cost only — missing the ownership cost component entirely.
Cold Weather Operations
Masonry contractors in northern climates carry seasonal overhead — propane heating equipment, wind screen inventory, winter protection blankets, and installation labor. This seasonal concentration distorts monthly overhead calculations — use the annual average for bid rate purposes.
THE CALCULATION — ONE SITTING, REAL NUMBER.
The interactive calculator: The CFOS overhead rate calculator walks through every line item category and produces your real overhead rate in about 10 minutes. Use it at constructioncfo.net/construction-overhead-rate-calculator-interactive
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