ABSTRACT
The company home office expenses cannot be chargeable most of the time to a single project. These expenses are usually neglected by small contractors-a bad practice because it minimizes the net profit or generates a real loss. General overhead represents contractor fixed expenses. A general contractor’s or subcontractor’s main office expense consists of many items. A summary of the major categories is presented in Table 19.1, “Home Office (General Overhead) Estimate Summary,” which can be used for budgeting expenses for the future calendar year. “Exempt” and “nonexempt” employees are designations from the Fair Labor Standards Act. The major difference between them is that employers are exempt from paying overtime to exempt employees. For these employees, referred to as salaried employees, the workweek is not limited to 40 hours.
