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Plumbing Heating And Piping

2.33. Supervision and Clerks

Salaried superintendents and clerks will be required, depending upon the size of the job. In this item of expense all necessary office personnel should be included as well as the main job superintendent. All other supervision should be included in the calculation of the average hourly rate as explained in Art. 3.8.

2.34. Gasoline and Oil

Gasoline and oil will be required to operate trucks, gasolineengine-driven welding machines, and other equipment for which allowance should be made.

2.35. Payroll Tax

Payroll tax is an item of expense which must be considered and well understood by the estimator and by management. The following information is offered as a guide only. Figures and percentages applicable to each company and locality must be determined based on Federal, state, and local tax laws. Payroll taxes paid by the employer, which are the only ones considered here, are as follows:

1. Federal and state unemployment taxes may total as much as 3 per cent of the first $3,000 of each individual's income, and is a tax which must be included in job overhead, This percentage will vary, depending upon the amount of charges to the unemployment account of the company.

2. Federal Old Age Benefit Tax (F.O.A.B.) will amount to 3 per cent of the first $4,800 of earnings of the employee.
These two taxes can and probably will produce an overhead burden of 6 per cent of the total payroll of the project.

2.36. Insurance Costs
The cost of insurance on a project should be considered as a part of job overhead and will usually be made up of all or part of the following:

1. Fire insurance where required by the specifications or desired by the contractor. This element must be discussed with an insurance company representative to determine rates and how they are applied.
2. Workmen's compensation insurance to cover lost time and medical and hospital bills in case of accidents involving the injury of one or more of the contractor's employees. The method of handling this insurance will vary in different states:

a. Some states have a monopoly on this item of insurance and premiums are paid into a state fund. Ohio is an example.
b. Other states allow insurance by a private carrier or a state fund at the option of the employer. Pennsylvania allows this option.
c. Still other states, Kentucky for example, do not have a state fund and the employer must insure with a private carrier.
The rates will vary, depending upon the history of the company relative to the cost in dollars of the accidents they have had. The minimum rate will probably be around 1 per cent but can go much higher than this.