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|Title||An Overhead Cost Assessment for Construction Projects in Gaza Strip|
|Title in Arabic||تقييم التكاليف الادارية لمشاريع التشييد في قطاع غوة|
An overhead cost of implementing projects is an important part in the construction industry in the Gaza Strip. It has significant role and influence on the performance of the construction companies and the implementation of the projects successfully. In addition, maintaining a good performance and quality of work way from possible loss. The construction industry in the Gaza Strip is under the exceptional circumstances caused by the political situation. Thus, it is normal to find an increase in disputes between contractors and clients; particularly related overhead costs. The purpose of the research is to examine the overhead costs management practice in the construction industry in Gaza. The awareness of construction companies and techniques followed by the contractors in estimating the overhead costs, affecting factors and mitigation measures was examined. The research also aims at highlighting the effect of suspension or delay in projects’ implementation on the overhead costs. A thorough literature review for overhead costs was made. A structured questionnaire supported by personal interviews was used as main to collect information. Sixty three contracting companies of first, second and third –degree 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. They follow precise practices to estimate the overheads costs taking into consideration irregular circumstances experienced by the Gaza Strip from the closures of borders and interruption of incoming raw construction materials. The results shows that contractors are taking several precautionary measures to minimize any risks associated with overheads costs, and reflect their vision on reducing these risks. Contractors rarely request overheads financial claims taking into consideration the impact of such claims on the relationship with the client and are always looking for an amicable solution away from litigation. This practice was reflected in the case study of this research. In this case, the view of the client and the contractor and the mechanism that has been followed in settling the financial claim amicably was demonstrated. There are a number of factors affecting the estimation of overhead costs, 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. The great significance of the overhead costs and their strong influence in the development and success of the construction industry in the Gaza Strip away from any risks that may arise. The main recommendations of this research are; the need to apply regulations and legal contracts to protect the rights of the clients and contractors, with the need for contractors to apply important procedures such as periodic auditing of overhead costs and good documentation for all costs to preserve their rights. In addition, it is recommended to follow amicable solutions between the parties as the basis in dealing with financial claims relating to overhead costs.
|Publisher||الجامعة الإسلامية - غزة|
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