Head office overheads
According to The Code of Estimating Practice, seventh edition, published by the Chartered Institute of Building (CIOB) in 2009, head office overheads are:
| The incidental costs of running a business as a whole. They are ‘indirect costs’ that cannot be directly allocated to production, as opposed to ‘direct costs’ which are the costs of production. Among other things, overheads may include rent, rates, director’s salaries, pension fund contributions and auditor’s fees. In accountancy, head office overheads are generally referred to as ‘administrative expenses’ whereas the direct costs of production are referred to as ‘cost of sales’. The apportionment of head office overheads to individual projects or as a percentage of company turnover is decided by management as part of a management policy. |
--CIOB
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
The London Build Expo is hosting a Diversity in Construction panel and networking session on October 24.
Mortar analysis for specifiers
Analysis can help develop a specification, but must not lead to inappropriate specifications being accepted.
Dos and don'ts for creating a smart home.
New ICE publication recommends pay-as-you-go tax to fund roads and other financing options.
BSRIA launches a White Paper on wearable technology and wellbeing in buildings.
Have the pressures of the market shredded the core values of professionalism?
Lead times are a measure of the amount of time that elapses between initiating and completing a construction process.
Government releases first tranche of funding for removal of unsafe high-rise cladding.
How to ensure UK transport infrastructure copes with severe winter weather.