CSLB C-33 Painting & DecoratingPlanning and EstimatingEasy
A painting contractor is preparing a bid for a multi-story commercial building. The project specifications include a clause stating that the contractor must provide and maintain a temporary power source for all tools and equipment used on site. Under which category of a bid estimate should the cost for this temporary power be itemized?
- AGeneral Overhead
- BMaterial Costs
- CDirect Labor Costs
- DProject Overhead
Show answer & explanationAnswer & explanation
Correct answer: D. Project Overhead
Temporary power for a specific project is a cost directly attributable to that project but not directly to labor or materials. It falls under project overhead, also known as general conditions.
Why the other options are wrong
- A. General overhead encompasses ongoing business expenses not specific to one project, like office rent or administrative salaries.
- B. Material costs are for the actual paint, primer, and other consumables applied to the building.
- C. Direct labor costs are wages paid to workers for time spent on the project.
Project Overhead (General Conditions)
Project overhead, also known as general conditions, includes costs incurred directly on a specific project that are not direct labor, direct materials, or subcontractor costs. These are often temporary site-specific expenses.
- Specific to one project.
- Not directly incorporated into the finished product.
- Examples include temporary utilities, site management, project-specific insurance.
Memory trick: Remember, project-specific costs are like a temporary project's 'umbrella' expenses.