.svg)
Material Overhead
What is Material Overhead?
Material Overhead in the construction industry refers to the indirect costs associated with handling and storing materials used for construction projects. This can encompass a wide range of expenses, such as the cost of storage facilities or warehouses, transportation and delivery costs, insurance, equipment maintenance and repair, and any costs associated with waste disposal or recycling. From a more managerial financial standpoint, material overhead can also include costs related to procurement processes, such as the salaries and benefits of the staff involved in purchasing and inventory management. Accurately calculating and managing material overhead costs is critical in the construction industry, as these costs can greatly affect a project's overall budget and profitability.
Trusted by trade contractors across the country
Other construction terms
What is an Architect?
An architect is a professional who works within the construction industry and is responsible for designing and planning buildings and oversee their construction. They utilize their specialized skills in art, science, technology, and humanities to design safe and functional buildings, from residential homes to large commercial properties. Besides the aesthetic aspect, their work also involves understanding structural integrity, safety regulations, and building codes. The role extends beyond design, it includes meetings with clients, contractors, engineers, and other professionals. Their intricate hand in shaping environments makes them a vital cog in the construction industry.
What is a Release?
In the construction industry, a release is a legal instrument that acts to terminate any legal liability between the releasor and the releasee, signed by the releasor. It is often used to settle disputes or claims, with one party agreeing to release the other from any existing obligations, responsibility or further legal action in return for a negotiated compensation. It may also refer to a point in a construction project where work is considered complete to a given level, allowing for payment or the transfer of responsibility to the next party involved in the process.
What is an Automated Clearing House (ACH)?
An Automated Clearing House (ACH) within the construction context refers to an electronic fund transfer system primarily used for direct deposit payments, including for construction services. It's a method universally used by many businesses in the industry for its convenience and speed. This system provides an efficient platform for moving funds from one account to another in a collective and prioritised manner, aiding greatly in the financial management of a construction project, including payroll and paying suppliers. The benefits include prompt payment, less risk of cheque fraud, and streamlined bookkeeping. It's an integral part of the financial mechanism in the construction industry.
Ready to end the fire drill and get paid faster?
