Overhead costs are indirect expenses that support the overall project operation.
Overhead Components
| Category | Items | % of Cost |
|---|---|---|
| Administrative | Site staff, office, communication | 3-5% |
| Statutory | Permits, licenses, certifications | 2-3% |
| Quality & Safety | Testing, inspections, PPE | 2-3% |
| Insurance | Project & personnel insurance | 1-2% |
| Temporary Facilities | Sheds, roads, water, power | 2-3% |
Overhead Calculation:
For ₹1 Crore Project (8 months):
Site Engineer: 4 × 50,000 × 1.25 = ₹2,50,000
Permits & Licenses = ₹1,50,000
Safety & Testing = ₹1,75,000
Insurance & Bonds = ₹1,00,000
Temp Facilities = ₹1,50,000
TOTAL = ₹8,25,000 (≈ 8.25% of cost)
Typical Range: 5-10% of direct costs
