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Stesso

Analyzing Overhead Costs and Lost Time

3:48
15:10
66.4K views

At 3:48 in

Lost $14,500 on this Jobsite 4/4

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What happens here

Blaine continues his financial analysis, emphasizing that while certain unforeseen circumstances like verified change orders (e.g., soil corrections) can be billed to the client, the lost time associated with them (e.g., waiting for approvals, figuring out solutions) contributes to the company's daily overhead. He reiterates the $1,000 per day overhead cost, which accumulates even when no billable work is being done. This highlights a critical aspect of waste management planning: identifying and quantifying the costs of non-productive time.

Goal: Blaine elaborates on how unforeseen issues, like soil corrections and equipment breakdowns, cause non-billable lost time, significantly increasing project overhead.

What they say

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is an expense and so in the beginning of this job we had a breakdown we lost time there then we had a soil correction which we got to charge for but we had tim and i had to figure out how to do the soil correction then we had to talk to engineers and while we were doing all of that we were still losing time we were losing lost hours the guys were still working but they weren't working full throttle they were working part throttle because we didn't know if we were veering left and doing a soil correction like this or veering right and doing a soil correction like that so while production slowed down our overhead costs just continued to go no i'm going heavy on the glue i'm doing that on purpose though because there are a lot of kids in this complex and you know they're going to be climbing all over this wall when we're yeah i done the fact that he takes that into consideration the kids like to climb on top of the blocks and without a good amount of glue on it those blocks can separate all right guys so on the corners there's two different types the inside 90 degree and what they call an outside 90 degree

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