Overhead: what does this concept include


Any company, firm or working enterprise necessarily works with overhead costs. Features of maintaining this type of documentation, as well as their total value in each individual case, have significant differences, and all calculations are carried out purely individually. A construction company is no exception.

As a rule, the concept of overhead costs includes the following:

  • expenses of the economic department and administration;
  • to serve the employees of the company;
  • for organizing processes at construction sites;
  • expenses that are not taken into account in generally accepted standards, but related to the category of overhead costs;
  • other.

Let's consider each item in more detail.

I. Administrative expenses

1. This includes costs intended to pay for the work of the administration and household staff, namely:
management apparatus - chiefs, specialists and other workers belonging to the category of employees;
line personnel - site managers, masters of construction specialties, mechanics at the site, workers who service the economic segment, as well as managerial employees, which include janitors, telecom operators, couriers, computer operators, technical staff, telegraph operators and many others.

2. Deductions of the amount for the payment of a single tax, in accordance with legislative norms, which is calculated from the amount intended for remuneration of the administration and economic staff.

3. Payment for mail and other communication services, which includes long-distance and international telephone calls, cellular communications and radiotelephones, pager messages, expenses for servicing telephone communications, switching devices, dispatching, teletypes and other types of communications, which are provided for by the balance of the enterprise; as well as expenses for renting the above funds or for paying for similar services provided by other companies, expenses for facsimile and satellite communications, use of e-mail and information systems such as Swift, and more.

4. Expenses required for the purchase of rights to use software and databases under contracts in accordance with license agreements. This includes spending on the purchase of pre-emptive rights to programs, as well as for their ongoing updates and database.

5. Costs for the use and maintenance of a computer used in the management process and on the balance sheet of the company, as well as payment for the necessary work that is performed in accordance with contracts with computer centers, counting stations and bureaus that are not put on the balance sheet of a construction company.
6. Expenses required for the maintenance of various office equipment, as well as those that arise in the process of carrying out printing work.
7. The costs that are needed for the maintenance and operation of the premises and buildings where the economic personnel and administration are located, namely, those transferred to the energy supply, water utility, as well as for keeping the territories clean; expenses incurred as payment for the land.
8. Payment for the provision of services by specialized companies in the legal, information and licensing direction.
9. Payments for consultations and other services provided by relevant specialists.
10. Payment for the services of a private or public notary for the execution of the necessary documents, carried out within the limits of the tariffs established by specialists.
11. Costs for the provision of audit services directly related to accounting and other financial documentation, which are carried out in accordance with the procedure established by the state.
12. Expenses required for the purchase of stationery supplies used in the preparation of reports, preparation of business papers, as well as for the acquisition of specialized periodicals, special technical literature and for bookbinding.
13. Expenses for carrying out repair activities, which include deductions to special funds of a reserve or current order, which are in the use of administrative and economic personnel.
14. Spending that allows you to form a reserve of warranty repairs and warranty after-service.
15. Expenses for the provision of business trips of employees and administration, which are organized within the boundaries of the company's places of residence.
16. Costs used to maintain the fleet or vehicles on the balance sheet of the organization; This item of expenditure also includes:

  • The salary of employees involved in the maintenance of passenger cars, together with deductions from the unified social tax.
  • Purchase of fuel, lubricants and other materials, as well as repair and purchase of spare parts, tires and payment for services for the operation of vehicles.
  • Garage facility maintenance costs - deductions for water, electricity, sewerage, etc., payment of rent for a garage building, car parking, depreciation and all types of repairs, including reserve and direct repair funds, and much more.

17. Payment for the rental of vehicles and construction equipment used for production.
18. Coverage of expenses when using your own car if you need to make a business trip, which are calculated taking into account the limit indicators fixed by the Government.
19. Expenses required to pay for the travel of representatives of the administration and household staff, as well as those who service cars, including compensation for lifting, offered in accordance with existing laws regarding transfers, new enrollments and departure for work in other places.
20. Payment for business trips made, if necessary, to carry out production activities by the administration and economic personnel, including payment for the use of working vehicles, taking into account the norms recommended by the laws of the country:

  • when following a person to the place designated in the travel list and back - to his immediate place of activity;
  • payment of daily allowances or other allowances, in accordance with the stipulated norms;
  • payment for registration and issuance of all kinds of documentation, which is drawn up as part of work at a particular construction company;
  • financial fees of various types - for entry, transit, passage, airfield, port, consular, for the passage of sea channels or other structures and other similar payments;
  • rental of residential premises.

21. Expenses for the administrative apparatus of a construction company, which are made by various structures that do not belong to the category of legal entities.
22. Payment for depreciation in relation to key funds that involve the maintenance of the administrative apparatus.
23. Costs of a representational nature, which imply a connection with the functioning of the company: reception and service of representatives of other enterprises, including foreign ones; those who participate in the negotiation processes in order to organize the most favorable conditions for mutual cooperation, and the participants who came to the meeting of the Council or other similar body of the organization.
It is only possible to add a column on representation expenses to the cost of the product sold by the company if there are primary accounting documents that are correctly drawn up and passed the control procedure. In fact, the costs cannot exceed the maximum limits provided for by law.
24. Expenses required for ongoing research on market conditions, the study of the general situation, including the main figures for production processes and product sales.
25. Payment for conducting banking activities.
26. Other expenses of an administrative and economic type - for payment to third-party companies, if the state of the company itself does not provide for the provision of certain services or certain services responsible for certain functions.

II. The cost of servicing people employed in construction

1. Expenses that are needed to form the professional qualities of employees.
It certainly takes into account indicators related to ensuring the work of companies that provide for payment for educational services that are provided in accordance with an agreement previously concluded with a training organization. These expenses provide for the inclusion in their final cost of products ready for sale - works or services - in the event that there is a document on cooperation with a non-state-owned company, but which has a license and access to this kind of activity. You also need to remember that such expenses are limited in size, taking into account the norms established by the state.
2. Payment of a single social tax, calculated from the cost of paying salaries to employees who are engaged in the construction process, as well as from the operation of various mechanisms and construction equipment when conducting non-capital repairs at the expense of overhead costs.
3. Expenses used to pay for services aimed at improving the level of living and sanitary conditions for employees:

  • transfers for depreciation or rent, for repairs of any type - in the form of money transfers to the provided specialized funds, as well as for the movement of special buildings of a collapsible format with a sanitary purpose;
  • maintenance of buildings of a sanitary nature - for salaries of employees, including deductions for a single tax: cleaners, electricians, locksmiths and other representatives of service personnel, as well as payment for used electricity, water, all kinds of communications, as well as for used hygiene products that pass according to the report card as equipment for toilets and shower rooms;
  • maintenance of inventory and premises, which are given free of charge for the organization and operation of first-aid posts and public catering establishments on the territory of a construction site or a construction company serving the workforce, including depreciation deductions for inventory wear and tear, expenses for all types of repair work, payments for lighting, sewerage, water , electricity, fuel materials for cooking, as well as payment for services for the delivery of food and prepared food directly to the workplace;
  • costs required to organize optimal working conditions and safety, in accordance with labor legislation, payment in the form of compensation for the treatment of occupational diseases of employees working in areas with harmful and difficult conditions;
  • payment for the services of other companies that are engaged in providing construction organizations with medical centers, canteens, canteens, change houses and other buildings, or compensation for their equity participation in all of the above.

4. Payment for the organization of labor protection and safety:

  • repair, washing, as well as wear and tear of workwear issued free of charge, personal protective equipment;
  • compensation for the cost of neutralizing agents, which must be given away free of charge within certain,
  • legislation - medical nutrition, fats, dairy products, etc.;
  • expenses involving the purchase of medical supplies and first-aid kits for medical and preventive, medical and sanitary services for workers;
  • payment for the required reference and poster products and other promotional printed products related to safety, prevention of traumatic situations and diseases during the employee's stay at the workplace, as well as stimulating the improvement of working conditions;
  • spending on premiums for insurance against industrial accidents and occupational diseases, which are established by special state regulations;
  • payment for services aimed at studying and vocational training regarding harmless ways of fulfilling duties in the field of labor protection, as well as special equipment for safety cabinets;
  • compensation for regular vehicle inspections;
  • payment for organizational processes for attestation of workplaces;
  • spending on the purchase of documentation-standards in the field of labor protection;
  • other costs required by the nomenclature of actions aimed at organizing labor protection, without including an item with capital investments.

III. Costs for organizational work at construction sites

1. Payment for repair work in relation to worn-out equipment, which is used in the conduct of scheduled work in the manner prescribed in advance.
2. Expenses for repair and other services, reconstruction of buildings of various types, the list of which is customary to include:

  • office houses and change houses, where both workers and their superiors spend time;
  • shower rooms and toilets, as well as buildings where you can warm up during the cold season;
  • storage and hanging structures;
  • rooms necessary for the maintenance of safety devices;
  • ladders, ladders, collapsible scaffolding and other devices used in construction;
  • scaffolds and their components, as well as suspension-type equipment, barrier products, hinged protective canopies and various kinds of covering materials;
  • temporary type wiring used in works with electricity, water supply, gas and air supply carried out in the working area;
  • costs foreseen when using devices on construction sites that replace the above-mentioned temporary structures and buildings.

3. Depreciation expense for the rental of equipment and fixtures used in repair processes and when moving.
4. Payments to security structures responsible for fire and other safety:

  • payment of salaries with all taxes to employees of departmental security, including paramilitary,
  • professional firefighters, security guards, regardless of whether they are included in the staff list or not;
  • payment of expenses related to the purchase of stationery, as well as to postal items, fax;
  • expenses for wear prevention and installation of devices used in fire fighting activities;
  • expenses for paying for property protection services, alarm operation, fire safety, and mandatory payment to representatives of their security service, which is responsible for protecting banking and economic procedures, material safety and much more;
  • payments for rent and wear and tear, which can be in the form of all kinds of deductions to specialized funds for the maintenance of guardrooms, garages and other units, including the payment of salaries to people who are employed in this sector.

5. Costs related to the conduct of regulatory work, namely: for the implementation of design and technological processes, technical assistance to construction, payment to specialized companies for conducting activities in the field of introducing innovative technologies for the organization of labor, its standardization and publication of special literature of a regulatory and technical orientation.
6. Expenses related to the segment of invention and rationalization, providing for the following:

  • experimental work involving the design of models and various samples according to rationalization requests;
  • compensation of awards to the authors of innovations and rationalization proposals;
  • expenses for the organization of exhibitions and conferences necessary for the development of innovation;
  • payment of bonuses to authors for notable achievements in the implementation of their ideas and rationalization proposals;
  • other payments.

7. Costs related to geodetic works that are carried out as part of the construction. This includes the payment of salaries to workers, including the taxes provided for - those who carry out this segment of work, as well as the price of materials and raw materials, wear and tear, maintenance of various types of repairs, the movement of geodetic equipment, transport and much more directly related to geodesy. Including the acceptance of a geodetic base from design and survey organizations.
8. Payment for design. This segment takes into account the payment of wages to employees of design and estimate teams and design teams, as well as the binding of typical temporary structures that belong to construction companies or their structural divisions that are involved in drafting projects and providing technical assistance.
9. Costs that provide maintenance of production laboratories, which include the following areas:

  • payment of wages to all employees, taking into account available taxes;
  • depreciation payments in the form of income to the necessary funds required for conducting various types of repairs;
  • equipment of laboratory premises;
  • compensation for materials used or worn out in the process of conducting experiments, parts of structures or structures - if this article is provided for by the construction estimate;
  • payment for the provided consultations and examinations;
  • costs for services provided by outside companies;
  • other payments.

10. Expenses for the provision of services by paramilitary mine rescue units in the course of capital works underground.
11. Payment for works carried out in the field of improvement and maintenance of construction sites:
timely payment of wages, taking into account the taxes provided for by law, as well as other payments related to the cleaning of the territory within the construction along with a section of the street, sidewalks, roads and other things that are adjacent to the entrusted site.
payment for electricity, including temporary stations, light bulbs, salary for fitters and other maintenance personnel employed in this area.
12. Costs related to the process of preparing construction objects for acceptance by the customer. This should include:

  • timely payment of wages, taking into account the deductions provided for by laws, as well as other payments to service personnel and specialists employed in this field;
  • spending on the purchase of detergents and other hygiene products that are required during the cleaning process;
  • payment for the collection and removal of construction waste upon completion of work related to the construction of buildings and installation;
  • costs for heating the premises upon delivery of the object.

13. Costs for the transportation of construction companies and their departments within the construction site - in this case, payments are not made if the estimate takes into account calculations based on machine hours, as well as when moving the construction company or its divisions to other construction sites.

IV. Other overheads

1. Depreciation on intangible assets.
2. Expenses for repayment of bank loans, except for loans taken for the acquisition of fixed assets and assets, as well as payments on budget loans related to investments and conversions.
The newly introduced lending rates of the Central Bank for commercial banks apply to newly concluded and extended agreements, as well as to previously concluded agreements, in which it is said in advance about changes in rates.
3. Costs planned for promotional products.

V. Costs that are not included in overheads, but are related to overhead costs

1. Expenses providing for compulsory insurance in accordance with the rules established by the laws of Ukraine regarding the order of property objects of a construction company included in the list of specific departments of employees working in the main production, as well as the use of specialized technical equipment at temporary facilities.
2. Expenses for the creation of insurance funds in accordance with the norms of the legislation of Ukraine in order to be able to finance expenses in the field of prevention and elimination of the consequences of natural and other disasters, as well as life insurance for employees and incurring civil liability for damage to property.
3. Various kinds of deductions, which are mandatory provided by the established legislation.
4. Expenses for certification of manufactured goods or services.
5. Commission fees and other expenses covering payment for the provision of services by third parties.
6. Making payments or contributions of voluntary insurance in accordance with a certain procedure for the use of vehicles, all kinds of cargo, construction sites, hazards that are expected in the course of work, as well as voluntary insurance of employees.
7. Payment of material assistance as compensation for disability due to injuries at work - based on the results of court decisions.
8. Transfers to reserve funds for temporary construction, if it is provided for in the estimate.
9. Costs that can be recovered from other credits related to the activities of contractors, namely:

  • for the transportation of employees who live more than 3 km in both directions - if there is no way to provide transportation by public transport;
  • as well as the costs provided for in the formation of an agreement with representatives of local authorities in order to be able to reimburse the costs for the use of passenger transport, except for taxis;
  • tariffs are taken into account those that exist at the time of the formation of the contract;
  • wages of workers employed in the format of contract work on a rotational basis;
  • payment for the procedure for transporting a construction company and its divisions to other construction sites;
  • payment for recruitment activities, including in the form of graduates of specialized educational institutions, universities, for travel to the workplace and for vacations before starting work;
  • costs of an additional nature, providing for the involvement in the construction of student groups, military and other contingents provided for by the legislation of Ukraine;
  • payment for measures to organize optimal working conditions, for example, the fight against occupational diseases, radioactivity, etc.;
  • payment and compensation for travel and other payments necessary for the travel of employees of various specialties - in the amounts provided for by law;
  • costs involving the purchase and maintenance of environmental protection products - cleaners, filters, ash collectors for wastewater treatment and disposal into the sewer;
  • compensation for lifting for new employees, the amount of payments of which is provided for by law;
  • contributions, contributions and other payments in the prescribed amounts in cases where they are necessary for the conduct of the company's activities and are among the mandatory ones, as well as if they are a condition for the provision of services by an international organization;
  • payment for legal services - for registration of property rights, provision of information on rights, property valuation, preparation and issuance of documents for cadastral and technical accounting, inventory of real estate;
  • other costs that are necessary to reimburse customers according to the laws of the country;
  • payment for research and development activities that relate to the creation of a new or improvement of an existing product.

"RСС ALBA" provides high-quality repair and construction services on a turnkey basis, calculating the entire estimate for the execution of the order even at the stage of concluding a contract. The overheads included in the document will not be an unpleasant surprise after the conclusion of the contract, which means that you will pay only the amount agreed in the contract, without additional costs and increase in the budget of the order.

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