What is the average range for overhead percentages in a bid?

The average range for overhead percentages in a bid typically falls between 5 to 20 percent. Overhead costs encompass various indirect expenses incurred during the execution of a project, including administrative costs, utilities, and office supplies, among others. This percentage serves as a crucial component of a contractor's overall pricing strategy, ensuring that indirect costs are adequately covered while allowing a margin for profit.

Choosing a range of 5 to 20 percent is common in the construction industry because it is representative of industry standards and practices. It is sufficiently flexible to accommodate different types of projects, varying degrees of complexity, and operational efficiencies that different contractors might have. This range aligns with many industry guidelines and is often recommended for contractors preparing their bids to ensure they remain competitive while covering necessary costs.