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A Prevailing Wage refers to the hourly rate, benefits and overtime, paid to the majority of workers, laborers, and mechanics within a particular area. In the construction industry, it's the standard wage contractors and subcontractors must pay their workers when working on government projects. It's derived from the Davis-Bacon Act of 1931 which mandates that workers on federal construction projects must be paid at least the prevailing wages in the local area. The goal is to maintain fairness and prevent undercutting of wages. It includes various types of construction jobs from carpentry, electricians, ironworkers to bricklayers. The rate differs from location to location and job to job.

Overbilling refers to the unscrupulous practice of charging more than what is warranted for materials or services in the construction industry. This can occur when a contractor bills for more material than what was actually used or invoices for labor and time that was not appropriately utilized or not used at all. Overbilling can have serious fiscal impacts on projects and can lead to legal consequences if discovered. The clients have to scrutinize the billings accurately to avoid falling victim to overbilling. Thus, overbilling is not an ethical practice and is discouraged in the construction industry. It not only hurts the client financially but can also damage the reputation and trust between parties involved in a construction project.

Cost of Goods Sold (COGS) in the construction industry represents the direct costs associated with the production of goods or services that a company sells. These costs may comprise the cost of raw materials such as lumber, steel, concrete; direct labor costs; storage costs, and direct utility costs. It can also include direct expenses like subcontractor costs, labor burden (i.e., benefits, insurance, taxes related to employee wages), material costs, and equipment costs that are directly attributable to a project's completion. COGS does not include indirect expenses such as sales and distribution costs or overhead costs such as office rent and utilities. In essence, COGS in construction is directly tied to specific projects and is a key factor in determining a project's gross profit and thus a company´s profitability.