Head office overhead as a share of the contract

What it is. 1.98% of contract value, head office overhead.

Range 0.99% to 1.98% (scenario)

Sample. 30 senior Australian estimators, mostly building work.

What it is not. Our multiplication of two figures, one of them a UK 2002 number cited second-hand. Use your own rate if you have it.

Our arithmetic. Head office is 9.9% of preliminaries (table 4); preliminaries are 10% to 20% of the contract sum (introduction, citing Chan & Pasquire 2002). 9.9% x 10% = 0.99%; 9.9% x 20% = 1.98%.

Where it came from

• O'Leary & Vaz-Serra (2025), Challenges in pricing preliminaries costs for contractors: An Australian case study
  table 4; introduction · source record

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