| This research studies Overhead (OH) Costs in building construction in Saudi Arabia including overhead awareness among contractors, overhead effect on contractors' performance and applied methods to identify, estimate, allocate and control overhead costs.;It was found that contractors classify construction OH costs into company (co.) and project OH costs. Results indicate that contractors have high co. OH costs with unorganized efforts to control them. Total direct costs for a project are the most frequently used base for allocating co. OH costs followed by expected project duration. Automobile and equipment, head office, labor related costs, and financing costs were found to be the highest attributes to co. OH costs. Contractors reported that delayed payments, lack of new projects, cost inflation, and government regulation represent the major causes for increased co. OH costs. Contractors' need for work, type of contract, and number of competitors have the highest effect on the amount of co. OH allocated to a project.;Survey indicates project OH costs are within acceptable range. However, project OH costs are rising due to delayed payments, client requirements, and cost inflation. |
