Revenue =

Company Overhead =

Project Overhead =

Company =

Project =

Profit Target =

Direct Costs =

Bid Amount =

Project budgets and profits based on historical data.

- Revenue: Total amount of money collected for a period of time, preferably a year.

- Company Overhead: Total of all company expenses considered to be overhead during the same time period as Revenue. Include those expenses that will continue to come whether you have work or not, i.e., office rent, administrative support, accountant, phones, etc.

- Project Overhead: Total of all company expenses considered to be project overhead incurred during the same time period as Revenue. Include those expenses that only occur because of specific projects, i.e., builder's risk insurance, superintendent, etc.

- Company: Percentage of revenue that should be allocated to company overhead.

- Project: Percentage of revenue that should be allocated to project overhead.

Projected

- Profit Target: Percentage of revenue that you want to claim as profit.

- Direct Costs: Direct cost of completing the project. Include the expenses that you incur in order to complete a project, i.e., materials, labor, subs etc.

- Bid Amout: Amount to bid on this job to cover overhead and make the desired profit.

You are about to bid a job and you have determined the direct cost of the project will be $92,000. Last year, you were profitable after $900,000 in revenue. After you tally your company overhead, you determine you spent $135,000. For project overhead, you spent $72,000. You are aiming to make 10% profit on each job. What amount should you bid on this job?

Last Year's Data

-Revenue: $900,000.00

-Company Overhead: $135,000.00

-Project Overhead: $72,000.00

-Company: 15.00%

-Project: 8.00%

Project

-Target: 10.00%

-Direct Costs: $92,000.00

The amount to bid is $137,313.43.

Revenue

Company Overhead

Project Overhead

Company

Project

Profit Target

Direct Costs

Bid Amount

-------------