Irrigation Installation Budget

COST OF GOODS SOLD (Direct Costs)

Materials 30 +/-3%
Direct Labor 20-22%
Labor Burden 25-35% (as a % of direct labor)
Fuel 2-4%
Equipment * 10-12%
Subcontractors 1-2%
Misc. 1-2%
Total direct costs 65-75%

G&A 25% +/- 3%

NET PROFIT 10% +/-5%

GENERAL and ADMINISTRATIVE (G&A)
OVERHEAD (Indirect Costs)

Advertising 1-2%
Bad debts 0.5-1%
Utilities 0.25-0.75%
Donations 0.1-0.2%
Downtime 1%
Downtime with labor burden 1-1.5%
Dues and subscriptions 0.1-0.2%
Medical Insurance for office staff 0-2.5%
Interest and bank charges 0.2-0.4%
Licenses and related bonds 0.1 to 0.2%
Office equipment, computers, software 0.2-0.4%
Office supplies 0.2-0.4%
Professional fees 1-1.5%
Cell phones 0.5%-1%
Rent 2-4% 
Salaries, office staff/officers 10-12% 
Salaries labor burden 12-15% (as a percent of labor)
Small tools/supplies 1-1.5%
Taxes (business asset tax) 0.1%
Training and education 0.2-0.3%
Travel and entertainment 0.3-0.5%
Uniforms and safety equipment 0.2-0.5%
Vehicles, overhead 1.5-2%
Yard expense and lease-hold improvements 0.1-0.2%
Miscellaneous 0-0.1%

TOTAL INDIRECT COSTS 25% +/- 1-2%
* Includes insurances, depreciation, repairs, mechanics, etc.