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Construction glossary
Construction Glossary •

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.

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Other construction terms

Construction Accounting

What is Construction Accounting?

Construction accounting is a distinct form of project-based accounting, designed specifically for the construction industry. It involves detailed tracking of costs, financial management of project tim...
Architect

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 ...
Direct Labor

What is Direct Labor?

Direct labor in the construction industry refers to the workforce directly involved in the construction, alteration or development of a project. This primarily includes on-site workers like carpenters...

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