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can you give me the best method to calculate indirect costs in a construction business?

AlabamaConstruction Accounting

Hi. Im working for a company thats dedicated to engineering and makes a lot of proyects of electrical equipment such as elevatotors, electric stands, air conditioner... the company has 25 years of working in the market and have been calculating their indirect costs based on an average of past years. For example, they make an estimate of how much they spent last year in administrative expensess and then include that expense as an indirect cost in the offers we present to our clients. you think this is the best way to do it or can you recomend me a better way?

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