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Contractor glossary

Overhead: Definition for Contractors

The ongoing cost of running the business that isn't tied to one job — vehicles, insurance, office, software, advertising, and admin time.

What is Overhead?

Overhead. The ongoing cost of running the business that isn't tied to one job — vehicles, insurance, office, software, advertising, and admin time.

Why it matters to your pricing

Every job has to carry a slice of overhead or your 'profit' is really unfunded cost. Recover it through your rate or markup.

This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.
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