What is a Submittal?

Applied overhead, in the context of the construction industry, refers to the allocation of indirect costs incurred during the construction project. These costs can include utilities, rent, salaries of non-project staff, equipment depreciation, or insurance. These costs do not directly contribute to a specific project but rather the operation of the business as a whole. In construction, these costs are typically distributed to each job based on a formula that might involve labor costs, materials cost, or some other fair measure. Understanding applied overhead is integral to accurate job costing and ensuring a construction project's profitability. Managing and accurately tracking these expenses can mean the difference between a successful construction project and one that loses money. Hence, applied overhead is a crucial financial aspect of any construction project.

Markup in the construction industry refers to the percentage increase added to the actual costs of construction projects to determine the selling price. The markup covers overhead expenses, such as administrative costs, and ensures the contractor makes a profit from the project. The percentage can vary greatly based on factors like the complexity of the project, competition in the local market, and the contractor's reputation and experience. Careful consideration is needed when deciding the markup as too high can make a contractor's bid uncompetitive, while too low may not cover all expenses or allow for a reasonable profit margin. A good understanding of the project, accurate cost estimations, and market research are crucial for determining an appropriate markup.

Breaking ground refers to the official start of construction on a project, typically marked by the initial digging into the ground. It’s the first step toward site preparation, which involves various tasks, like soil testing, land clearing, excavation, leveling, etc. The term originates from the literal act of "breaking" or disturbing the ground to begin foundation work.

Breaking ground marks the transition from pre-construction activities (permitting and design finalization) to actual building work. This is when project timelines become essential to track, material deliveries need coordination, and subcontractors start mobilizing their teams and equipment to the job site. 

Once its time to start building, it’s time to start billing. Siteline helps subcontractors streamline their pay app and lien waiver processes, eliminating bottlenecks that can hold up payments for faster payments. Learn more about Siteline.