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Disaster Advice Glossary
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Disaster recovery and restoration can be veiled in mystery to the many who have not undertaken specific training. This glossary explains technical terms to assist both report writing and the understanding of those technical terms so often misunderstood.
Definition
| Administrative Costs: |
On some jobs and insurance claims a contractor or engineer may oversee a project or be part of the overall team management of the project, while not providing any direct equipment or manpower. Education Note:The billing will include administrativecosts as a percent of the general overhead of the contractor or engineer. In other instances administrative costs are direct costs added to the job. See Mobilization Costs, Overhead & Profit |
| Cost Accounting: |
An actuarial method of computing costs of a job, which breaks down labor, material, overhead including administrative costs and insurance, and profit. See Best, Xactimate |
| Mobilzation Costs: |
The costs and expenses incurred during the assembly of employees and equipment, materials and supplies, prior to the start of scheduled and emergency work. Mobilization costs including transportation, if covered under the terms of the contract, are reimbursable job related costs. See Administrative Costs |
| Overhead and Profit (O&P): |
The reasonable overhead and profit required on each contracted job. There are different interpretations about overhead and profit across the United States and Canada. Contractor Note: In state construction codes for state licensed contractors, overhead and profit is the legal add-on of the estimated percent of overhead and costs, including labor burden, added on to the estimated costs, then a percent of profit is added on top of all costs of the job. General contractors will add a 10-20% to the job cost estimate as part of the overhead costs, and then, 10-20% on top of all combined costs. Adjuster Note: Some insurance company adjusters will accept or deny O&H costs. The reasons appear to vary with each claim, adjuster, adjusting claims office and region. Some insurance adjuster state ...that you have to have three subtrades on a job before they will allow O&H to the general contractor, while other insurance company adjusters have their own reasons, why they accept or deny O&H from a general. Some state contractor licensing boards have suggested guidelines on overhead and profit. See Administrative Costs, Overhead |
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The Disaster Advice Glossary operates on TechMerit Technoloy.
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