An Overhead Costs Assessment for Construction Projects at Gaza Strip

Abstract

An overhead cost of projects has significant role and influence on the performance of the construction companies. In addition, maintaining a good performance and quality of work away from possible loss. The purpose of the research is to examine the overhead costs management practice in the construction industry in the Gaza Strip. The awareness of construction companies and techniques followed by the contractors in estimating the overhead costs, affecting factors and mitigation measures was examined. A structured questionnaire supported by personal interviews was used to collect information. Sixtythree contracting companies 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. Gaza Strip Contractors follow precise practices to estimate the overheads costs. Contractors are taking several precautionary measures to minimize any risks associated with overheads costs. Factors affecting the estimation of overhead costs are 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.