Overheads are not just a cost

Abstract

The predominant view by contractors is that overheads are mainly seen as harvesters of retained earnings and that their associated costs are often to blame for reduced profits (or loss.) The research found that overheads apart from their associated costs are important strategically, play a vital role in the winning of tenders, help achieve the primary goal of the business which is to make profit, assist in creating a performance management culture and assist in owner caused delay claims. The research strongly opposes the view by some contractors and establishes that overheads are more than just a cost for the construction company.