Investigating the overhead costs in construction projects in Palestine

Abstract

Purpose – This paper aims to investigate the overhead costs of construction contractors at the Gaza Strip, Palestine, specifically the level of contractors' awareness of the concept of overhead cost, their perception of main components of overhead cost, percentage of overhead to total project cost, method used to manage and control overhead cost, and reasons for increasing overhead cost. Design/methodology/approach – In the research 40 contractors classified under the Palestinian Contractors Union (PCU) and United Nation Relief Works Agency (UNRWA) list were surveyed. Findings – The findings indicate that the majority of contractors are aware of overhead costs in construction projects. The staff wages are the highest overhead costs component. The currency exchange rates, inflation, increase in financial costs among others lead to increase in overhead costs. The findings illustrate that the overhead costs are …