1 September 1997
10-2. Job Office Overhead
a. Job overhead costs are those costs at the
project site which occur specifically as a result of that
particular project. Some examples of job overhead
a. Overhead costs are those costs which cannot
be attributed to a single task of construction work.
(1) Job supervision and office personnel.
Costs which can be applied to a particular item of
work should be considered a direct cost to that item
(2) Engineering and shop drawings/surveys.
and are not to be included in overhead costs. The
overhead costs are customarily divided into two
(3) Site security.
(4) Temporary facilities, project office.
(1) Job office overhead, also referred to as
General Conditions or Field Office Overhead.
(5) Temporary material storage.
(2) General home office overhead, commonly
(6) Temporary utilities.
referred to as General and Administrative (G&A)
(7) Preparatory work and laboratory testing.
b. The cost engineer must be sure that overhead
(8) Transportation vehicles.
costs are not duplicated between the two categories.
Because of the nature of overhead costs, it is not
(9) Supplies and maintenance facilities.
practical to discuss all overhead items. Specific
considerations must be carefully evaluated for each
(10) Temporary protection and Occupational
project. The cost engineer must use considerable care
Safety and Health Administration (OSHA)
and judgment in estimating overhead costs. Many
indirect cost items are frequently described in the
General Requirements Section (CSI Division 01) of
the contract specifications. If not related to a specific
work task, these costs must be identified and
(12) Permits and licenses.
appropriately assigned as overhead costs.
c. The application of a previously determined
overhead rate may be used for early design stages, but
(14) Schedules & reports.
it is not an accurate or reliable method of forecasting
costs. Overhead will vary from project to project and
(15) Quality control.
may even vary from month to month within any given
project. Job overhead items for the prime contractor
should be estimated in detail for all projects at final
design requiring a Government estimate. Detailing of
overhead costs for subcontract work is recommended
when the impact of these costs is significant. A job
(18) Equipment costs not chargeable to a
overhead model is included in the MCACES model
data base and should be followed in estimating costs
(19) Operation and maintenance of
temporary job-site facilities.