Overhead Cost Assessment of Construction Projects in Erbil Governorate

Abstract

Overhead or indirect cost considers as an element of the total project costs. The economic strength of any country depends on the activity of their construction industry. Overhead is an idiom refers to the costs required to operate a business, but it could not be directly attributed to any specific business activity, product, or service. And so on, overhead costs do not generate profits directly. Overhead is remainedimportant since it provides major support for the generation of profit-making value. The objective of this study is to explore common methods of measuring the overhead cost of the project in perspective of the contractors, as well as to show important types of overhead costs entire measuring cost. The research method has been conducted is a questionnaire concerning overhead cost in construction projects in Erbil Governorate. The questionnaire consists of two sections include, specify the method used by technical sector or company to measure overhead cost for the project, with choices, (i. Measuring in details ii. Measuring as a percentage, iii. Measuring as a lump sum, iv. Vary from one project to another, v. Other Method), and specify the overhead cost important, with indicating the choices of assessment. Thus; the total of 70 requests has been distributed to the respondents, 54 questioners responded. Excel program used to analyze information obtained through conducting statistical operations. Results showed that most frequent method used was measuring in details, with a percentage (42.6%). And the study shows that the most important overhead cost is material test costs which scored (RII=0.76), because of its great effect on the construction project processes generally and on overhead cost especially.