An overhead cost of projects has significant role and influence on the performance of the construction companies. In addition, maintaining a good performance and quality of work away from possible loss. The purpose of the research is to examine the overhead costs management practice in the construction industry in the Gaza Strip. The awareness of construction companies and techniques followed by the contractors in estimating the overhead costs, affecting factors and mitigation measures was examined. A structured questionnaire supported by personal interviews was used to collect information. Sixty-three contracting companies working in the construction industry in the Gaza Strip were surveyed. The analysis shows a good awareness of the concept of overheads costs and its components. Gaza Strip Contractors follow precise practices to estimate the overheads costs. Contractors are taking several precautionary measures to minimize any risks associated with overheads costs. Factors affecting the estimation of overhead costs are including the management capacity of the company and its policy, led by the company's experience and ability to implement the project within the time frame. There are other factors related to the working environment of the project, especially the closure of commercial crossings of the Gaza.
| Published in | American Journal of Civil Engineering (Volume 3, Issue 4) |
| DOI | 10.11648/j.ajce.20150304.11 |
| Page(s) | 95-101 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Project Overhead, Home Office Overhead, Construction
| [1] | Assaf, S. A., Bubshait, A. A., Atiyah, S. and Al-Shehri, M. (2001), “The management of construction company overhead costs”, International Journal of Project Management, Vol.19, pp. 295-303. |
| [2] | Dagostino, F. R. (2002), “Estimating in building construction”, 6th edition, Prentice-Hall, Englewood Cliffs, N.J. |
| [3] | Abdul-Malak, M. A. U., El-Saadi, M. M. H. and Abou-Zeid, M. G. (2002), “Process model for administrating construction claims”, Journal of Management in Engineering, ASCE, Vol.18 No.2, pp. 84-94. |
| [4] | Zack, Jr. James G. (2002), "Calculation and recovery of home office overhead", Construction management Journal, International Cost Engineering Council, 3rd world Congress on cost Engineering, Project Management and Quantity Surveying, 6th Pacific Association of Quantity Surveyors congress, Melbourne, Australia, April 14-18. |
| [5] | McKibbin, R. and Stokes, M. (2005), “Preparation and presentation of claims for delay”, Precept Programme Management Limited, Stanford House, London. |
| [6] | Holland, N. and Hobson, D. (1999), “Indirect cost categorization and allocation by construction contractors”, Journal of Architectural Engineering, ASCE, Vol.5 No.2, pp. 49-56. |
| [7] | Cilensek R. (1991), "Understanding contractor overhead", Cost Engineering, AACE, Vol.33 No. 12. |
| [8] | Coombs, W. E., and Palmer, W. J. (1995), “Construction accounting and financial management”, 5th edition, McGraw-Hill, New York. |
| [9] | Peurifoy, R. L., and Oberlender, G. D. (2002), “Estimating construction costs”, 5th edition, McGraw-Hill, New York. |
| [10] | Chan,C. T. W. and Pasquire, C. (2002), “ Estimation of project overheads: a contractor perspective”, in Greenwood, D. (Ed.), 18th Annual ARCOM Conference, 2-4 September 2002, and University of Nothumbria, Vol. 1 Association of Researchers in Construction Management , pp. 53-62. |
| [11] | Lowe, S., Bielek, R. and Burnham, R. (2003), “Compensation for contractors’ home office overhead: A Synthesis of highway practice”, American Association of State Highway and Transportation Officials, National Cooperative Highway Research Program, National Research Council (U.S.), Los Angeles, California |
| [12] | Ruf, H. B. and Ruf S. (2007), “Documentation and presenting cost in underground construction claims", No-Dig Conference & Exhibition, San Diego, California April 16-19, 2007 |
| [13] | Neil, J. M. (1981), “Construction cost estimating for project control”, Prentice-Hall, Englewood Cliffs, N.J. |
| [14] | Shelton, F. and Brugh, M. (2002), “Indirect costs of contracts”, Journal of Construction Accounting and Taxation, Vol. 12 No. 4, pp. 3-9. |
| [15] | Clough, R., Sears, G. and Sears, K. (2000), “Construction project management”, 4th edition, John Wiley & Sons, New York. |
| [16] | Irwin II, W. (2005), “Current Issues to watch for in construction claims, part III: Overhead Claims”,http://www.lorman.com/newsletters/article.php?article_id=81&newsletter_id=22&category_id=3&topic=CN, (accessed March 2012). |
| [17] | Stewart, R. D., Wyskida, R. M., Johannes, J. D. (1995), “Construction cost estimating. In: cost estimator’s reference manual”, 2nd edition. John Wiley & Sons, Inc. |
| [18] | Boussabaine, A.H. and Elhag, T. (2001), “Tender price estimation using artificial neural networks”, Journal of Financial Management Property Construction, Vol. 63 No.3, pp.193-208. |
| [19] | Hegazy T. and Ayed, A., (1998) "A Neural Network Model for Parametric Cost Estimation of Highway Projects," Jr. of Construction Engineering & Management, ASCE, 24(3), 210-218. |
| [20] | Mason, A.K. and Kahn, D.J. (1997), “Estimating costs with fuzzy logic”, Proceedings of the 1997 41st Annual Meeting of AACE International, July 13-16, Dallas, TX, 6 pages. |
| [21] | Sha’ath, K. and Singh, G. (1993), “A Stochastic cost engineering system (SCENS) applied to estimating and tendering for bill of quantities contracts”, In: Proceedings of 5th International Conference on Computing in Civil and Building Engineering, California, USA, 7-9 June, pp.70-77. |
| [22] | Elhag, T. and Boussabaine, A.H. (1998), “Factors affecting cost and duration of construction projects”, In: EPSRC Research Report, Phase (1) |
| [23] | Eksteen, B. and Rosenberg, D. (2002), “ The management of overhead costs in construction companies” in Greenwood, D. (Ed.), 18th Annual ARCOM Conference, 2-4 September 2002, and University of Nothumbria, Vol. 1 Association of Researchers in Construction Management, pp. 13-22. |
| [24] | ElSawy, I., Hosny, H. and Abdel Razek, M. (2011), “A Neural Network Model for Construction Projects Site Overhead Cost Estimating in Egypt”. IJCSI International Journal of Computer Science Issues, Vol. 8 No. 1, pp. 273-283. |
| [25] | Hegazy, T. and Moselhi, O. (1995), “Elements of cost estimation: a Survey in Canada and the United States”, Cost Engineering, Vol.37 No.5, pp.27–33. |
APA Style
Nabil I. El-Sawalhi, Ahmed El-Riyati. (2015). An Overhead Costs Assessment for Construction Projects at Gaza Strip. American Journal of Civil Engineering, 3(4), 95-101. https://doi.org/10.11648/j.ajce.20150304.11
ACS Style
Nabil I. El-Sawalhi; Ahmed El-Riyati. An Overhead Costs Assessment for Construction Projects at Gaza Strip. Am. J. Civ. Eng. 2015, 3(4), 95-101. doi: 10.11648/j.ajce.20150304.11
AMA Style
Nabil I. El-Sawalhi, Ahmed El-Riyati. An Overhead Costs Assessment for Construction Projects at Gaza Strip. Am J Civ Eng. 2015;3(4):95-101. doi: 10.11648/j.ajce.20150304.11
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.ajce.20150304.11,
author = {Nabil I. El-Sawalhi and Ahmed El-Riyati},
title = {An Overhead Costs Assessment for Construction Projects at Gaza Strip},
journal = {American Journal of Civil Engineering},
volume = {3},
number = {4},
pages = {95-101},
doi = {10.11648/j.ajce.20150304.11},
url = {https://doi.org/10.11648/j.ajce.20150304.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajce.20150304.11},
abstract = {An overhead cost of projects has significant role and influence on the performance of the construction companies. In addition, maintaining a good performance and quality of work away from possible loss. The purpose of the research is to examine the overhead costs management practice in the construction industry in the Gaza Strip. The awareness of construction companies and techniques followed by the contractors in estimating the overhead costs, affecting factors and mitigation measures was examined. A structured questionnaire supported by personal interviews was used to collect information. Sixty-three contracting companies working in the construction industry in the Gaza Strip were surveyed. The analysis shows a good awareness of the concept of overheads costs and its components. Gaza Strip Contractors follow precise practices to estimate the overheads costs. Contractors are taking several precautionary measures to minimize any risks associated with overheads costs. Factors affecting the estimation of overhead costs are including the management capacity of the company and its policy, led by the company's experience and ability to implement the project within the time frame. There are other factors related to the working environment of the project, especially the closure of commercial crossings of the Gaza.},
year = {2015}
}
TY - JOUR T1 - An Overhead Costs Assessment for Construction Projects at Gaza Strip AU - Nabil I. El-Sawalhi AU - Ahmed El-Riyati Y1 - 2015/06/11 PY - 2015 N1 - https://doi.org/10.11648/j.ajce.20150304.11 DO - 10.11648/j.ajce.20150304.11 T2 - American Journal of Civil Engineering JF - American Journal of Civil Engineering JO - American Journal of Civil Engineering SP - 95 EP - 101 PB - Science Publishing Group SN - 2330-8737 UR - https://doi.org/10.11648/j.ajce.20150304.11 AB - An overhead cost of projects has significant role and influence on the performance of the construction companies. In addition, maintaining a good performance and quality of work away from possible loss. The purpose of the research is to examine the overhead costs management practice in the construction industry in the Gaza Strip. The awareness of construction companies and techniques followed by the contractors in estimating the overhead costs, affecting factors and mitigation measures was examined. A structured questionnaire supported by personal interviews was used to collect information. Sixty-three contracting companies working in the construction industry in the Gaza Strip were surveyed. The analysis shows a good awareness of the concept of overheads costs and its components. Gaza Strip Contractors follow precise practices to estimate the overheads costs. Contractors are taking several precautionary measures to minimize any risks associated with overheads costs. Factors affecting the estimation of overhead costs are including the management capacity of the company and its policy, led by the company's experience and ability to implement the project within the time frame. There are other factors related to the working environment of the project, especially the closure of commercial crossings of the Gaza. VL - 3 IS - 4 ER -
Information
Email: