disposal waste faq Should Disposal Fees Go In My Material Budget?

Typically, yes.. but disposal fees often belong in both your material budget and your overhead budget.

Remember

...anything you include in your estimates belongs in your Cost Of Goods Sold (or Job Cost) budgets.  Anything you don't include in your estimates must go in your overhead budget in order to get recovered.

So while most companies do charge disposal fees to some jobs - there is almost always waste/disposal brought back to the yard that is not recovered in estimates and therefore must be in your overhead budget.

So most companies:

  • Have a disposal line in their material (COGS) budget which is where the expense costs for disposal bins etc. hired out specifically for jobs
  • Have a disposal line in their overhead budget too - this is where the costs of dumping or hauling waste from the yard is expensed

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