diff --git a/app/helpers/contracts_helper.rb b/app/helpers/contracts_helper.rb
index 5cdbc82..fbea455 100644
--- a/app/helpers/contracts_helper.rb
+++ b/app/helpers/contracts_helper.rb
@@ -2,6 +2,7 @@ module ContractsHelper
   def setup_nested_deliverable_records(deliverable)
     returning(deliverable) do |d|
       d.labor_budgets.build if d.labor_budgets.empty?
+      d.overhead_budgets.build if d.overhead_budgets.empty?
     end
   end
 end
diff --git a/app/models/deliverable.rb b/app/models/deliverable.rb
index abc1c91..6ed0369 100644
--- a/app/models/deliverable.rb
+++ b/app/models/deliverable.rb
@@ -5,8 +5,10 @@ class Deliverable < ActiveRecord::Base
   belongs_to :contract
   belongs_to :manager, :class_name => 'User', :foreign_key => 'manager_id'
   has_many :labor_budgets
+  has_many :overhead_budgets
 
   accepts_nested_attributes_for :labor_budgets
+  accepts_nested_attributes_for :overhead_budgets
   
   # Validations
   validates_presence_of :title
diff --git a/app/models/overhead_budget.rb b/app/models/overhead_budget.rb
new file mode 100644
index 0000000..62b8a69
--- /dev/null
+++ b/app/models/overhead_budget.rb
@@ -0,0 +1,18 @@
+class OverheadBudget < ActiveRecord::Base
+  unloadable
+
+  # Associations
+  belongs_to :deliverable
+
+  # Validations
+
+  # Accessors
+
+  def budget=(v)
+    if v.is_a? String
+      write_attribute(:budget, v.gsub(/[$ ,]/, ''))
+    else
+      write_attribute(:budget, v)
+    end
+  end
+end
diff --git a/app/views/deliverables/_form.html.erb b/app/views/deliverables/_form.html.erb
index 5b9ab39..f3e9266 100644
--- a/app/views/deliverables/_form.html.erb
+++ b/app/views/deliverables/_form.html.erb
@@ -25,11 +25,18 @@
 
   <% form.inputs :name => l(:text_deliverable_finances), :id => 'deliverable-finances' do %>
     <% form.semantic_fields_for :labor_budgets do |labor_budget| %>
-      <% labor_budget.inputs :name => l(:field_labor) do %>
+      <% labor_budget.inputs :name => l(:field_labor), :id => 'deliverable-labor' do %>
         <%= labor_budget.input :hours, :label => l(:text_short_hours), :input_html => {:size => 10} %>
         <%= labor_budget.input :budget, :label => l(:text_dollar_sign), :input_html => {:size => 10} %>
       <% end %>
     <% end %>
+
+    <% form.semantic_fields_for :overhead_budgets do |overhead_budget| %>
+      <% overhead_budget.inputs :name => l(:field_overhead), :id => 'deliverable-overhead' do %>
+        <%= overhead_budget.input :hours, :label => l(:text_short_hours), :input_html => {:size => 10} %>
+        <%= overhead_budget.input :budget, :label => l(:text_dollar_sign), :input_html => {:size => 10} %>
+      <% end %>
+    <% end %>
   <% end %>
 
 <% end %>
diff --git a/db/migrate/005_create_overhead_budgets.rb b/db/migrate/005_create_overhead_budgets.rb
new file mode 100644
index 0000000..0cf8501
--- /dev/null
+++ b/db/migrate/005_create_overhead_budgets.rb
@@ -0,0 +1,16 @@
+class CreateOverheadBudgets < ActiveRecord::Migration
+  def self.up
+    create_table :overhead_budgets do |t|
+      t.decimal :hours, :precision => 15, :scale => 4
+      t.decimal :budget, :precision => 15, :scale => 4
+      t.references :deliverable
+      t.timestamps
+    end
+
+    add_index :overhead_budgets, :deliverable_id
+  end
+
+  def self.down
+    drop_table :overhead_budgets
+  end
+end
diff --git a/test/integration/deliverables_edit_test.rb b/test/integration/deliverables_edit_test.rb
index a1254ea..473585c 100644
--- a/test/integration/deliverables_edit_test.rb
+++ b/test/integration/deliverables_edit_test.rb
@@ -60,8 +60,15 @@ class DeliverablesEditTest < ActionController::IntegrationTest
     check "Feature Sign Off"
     check "Warranty Sign Off"
 
-    fill_in "hrs", :with => '20'
-    fill_in "$", :with => '$2,000'
+    within("#deliverable-labor") do
+      fill_in "hrs", :with => '20'
+      fill_in "$", :with => '$2,000'
+    end
+
+    within("#deliverable-overhead") do
+      fill_in "hrs", :with => '10'
+      fill_in "$", :with => '$1,000'
+    end
 
     click_button "Save"
 
@@ -78,5 +85,9 @@ class DeliverablesEditTest < ActionController::IntegrationTest
     assert_equal 20, @labor_budget.hours
     assert_equal 2000.0, @labor_budget.budget
 
+    assert_equal 1, @hourly_deliverable.overhead_budgets.count
+    @overhead_budget = @hourly_deliverable.overhead_budgets.first
+    assert_equal 10, @overhead_budget.hours
+    assert_equal 1000.0, @overhead_budget.budget
   end
 end
diff --git a/test/integration/deliverables_new_test.rb b/test/integration/deliverables_new_test.rb
index 94f6173..bfa418c 100644
--- a/test/integration/deliverables_new_test.rb
+++ b/test/integration/deliverables_new_test.rb
@@ -112,7 +112,7 @@ class DeliverablesNewTest < ActionController::IntegrationTest
 
   end
 
-  should "create new budget item for the deliverables" do
+  should "create new budget items for the deliverables" do
     @manager = User.generate!
     @role = Role.generate!
     User.add_to_project(@manager, @project, @role)
@@ -128,19 +128,32 @@ class DeliverablesNewTest < ActionController::IntegrationTest
     fill_in "End Date", :with => '2010-12-31'
     fill_in "Notes", :with => 'Some notes on the deliverable'
 
-    fill_in "hrs", :with => '20'
-    fill_in "$", :with => '$2,000'
-    
+    within("#deliverable-labor") do
+      fill_in "hrs", :with => '20'
+      fill_in "$", :with => '$2,000'
+    end
+
+    within("#deliverable-overhead") do
+      fill_in "hrs", :with => '10'
+      fill_in "$", :with => '$1,000'
+    end
+
     click_button "Save"
 
     assert_response :success
     assert_template 'contracts/show'
 
     @deliverable = Deliverable.last
+
     assert_equal 1, @deliverable.labor_budgets.count
     @labor_budget = @deliverable.labor_budgets.first
     assert_equal 20, @labor_budget.hours
     assert_equal 2000.0, @labor_budget.budget
+
+    assert_equal 1, @deliverable.overhead_budgets.count
+    @overhead_budget = @deliverable.overhead_budgets.first
+    assert_equal 10, @overhead_budget.hours
+    assert_equal 1000.0, @overhead_budget.budget
   end
 
 end
diff --git a/test/unit/deliverable_test.rb b/test/unit/deliverable_test.rb
index 22328d8..67da0f8 100644
--- a/test/unit/deliverable_test.rb
+++ b/test/unit/deliverable_test.rb
@@ -4,6 +4,7 @@ class DeliverableTest < ActiveSupport::TestCase
   should_belong_to :contract
   should_belong_to :manager
   should_have_many :labor_budgets
+  should_have_many :overhead_budgets
 
   should_validate_presence_of :title
   should_validate_presence_of :type
diff --git a/test/unit/overhead_budget_test.rb b/test/unit/overhead_budget_test.rb
new file mode 100644
index 0000000..38a3a31
--- /dev/null
+++ b/test/unit/overhead_budget_test.rb
@@ -0,0 +1,29 @@
+require File.dirname(__FILE__) + '/../test_helper'
+
+class OverheadBudgetTest < ActiveSupport::TestCase
+  should_belong_to :deliverable
+
+  context "#budget=" do
+    should "strip dollar signs when writing" do
+      e = OverheadBudget.new
+      e.budget = '$100.00'
+      
+      assert_equal 100.00, e.budget.to_f
+    end
+
+    should "strip commas when writing" do
+      e = OverheadBudget.new
+      e.budget = '20,100.00'
+      
+      assert_equal 20100.00, e.budget.to_f
+    end
+
+    should "strip spaces when writing" do
+      e = OverheadBudget.new
+      e.budget = '20 100.00'
+      
+      assert_equal 20100.00, e.budget.to_f
+    end
+  end
+
+end