Skip to main content

Overhead Recovery Tab (Detailed Budget)

Written by ZevBit Software

The Overhead Recovery tab is where your overhead costs are distributed across your operations. The layout and level of interaction in this page depend entirely on the recovery method selected at the top.

Selecting a Recovery Method

At the top of the page, you can choose between three methods:

  • Weighted Overhead Recovery

  • Equal Overhead Recovery

  • Field Labor Only Recovery

Each method changes how overhead is allocated and how the data is presented below.

Weighted Overhead Recovery

When this method is selected, the page displays the Weighted Overhead Recovery System table.

This is the most interactive option, allowing you to control how overhead is distributed across:

  • Materials

  • Subcontractors

  • Billable Equipment

You can adjust values directly in the table depending on the selected mode:

  • Enter Markup % β†’ define markup percentages per cost type

  • Enter Overhead Distribution % β†’ define how overhead is split across cost types

Switching between these options (top right of the table) updates how the table behaves and recalculates values accordingly.

As you make changes:

  • The system updates Overhead Recovered and Breakeven Point

  • Totals are recalculated automatically

  • A chart at the bottom visualizes the relationship between Direct Cost, Overhead Recovered, and Breakeven across cost categories

Equal Overhead Recovery

When this method is selected, the table becomes non-editable.

The system automatically applies a single, uniform markup percentage across all cost types (labor, materials, subcontractors, equipment).

This percentage is calculated based on:

  • Total overhead entered in the Overhead tab

  • Total direct costs from other tabs (Field Labor, Materials, Subcontractors, etc.)

In simple terms:

The system determines one markup % that, when applied evenly to all costs, fully recovers your total overhead.

Because of this:

  • You cannot manually adjust distribution

  • All cost categories carry the same proportional overhead burden

Field Labor Only Recovery

When this method is selected, the layout simplifies into a summary table.

In this approach:

  • All overhead is allocated only to field labor

  • The system calculates an overhead cost per man-hour

This is done using:

  • Total overhead cost

  • Total billable field labor hours (from the Field Labor tab)

The result shows:

  • Overhead Recovery per Man Hour

  • Average Direct Cost per Man Hour

  • Breakeven Cost per Man Hour

This method is fully calculated by the system, and no inputs can be modified here.

Did this answer your question?