Private Works Overheads

[Matthew Sykes]

Could any Council's that raise an overhead charge on top of their private works direct costs, which is based on a analysis of components of the overhead charge, please provide details?

[ken]

Hi Matthew,

Two questions for you:

1. What overhead items are you guys thinking about charging/ incorporating within a Private Works charge!?

2. Do you envisage the overheads will be charged as a component of the direct hours charged or could some be flat amounts per job!?

Ken

[Kate Monaghan]

Hi,

We add 30% on-cost to the direct wages charged to a private works job. This is calculated by:
9% superannuation
4.5% workers comp insurance
8% annual leave
2% sick leave
2% public holidays
4.5% administration cost associated with payroll processing / HR costs etc.

In addition, we add 10% admin componant for stores and creditors costs posted to any private works job.

[ken]

Hi Kate,

Thx for the response.

I know the question posted only talked about overheads, and you have listed these which are in effect cost recovery amounts for direct labour & some admin...but I am curious if you (or anyone else out there):

1. Charges any profit margin on top of all costs charged in recovering/billing private works!?
2. Charge a different Plant Hire rate to Privtae Works Jobs (as oposed to what Council charges itsefl on it's own jobs).