Davis, R and Watson, P (1999) The utilization of formulae in overhead and profit claims. In: Hughes, W (ed.) Proceedings of 15th Annual ARCOM Conference, 15-17 September 1999, Liverpool, UK.
Abstract
Head office overheads are recognized as a justifiable head of claim in claims for loss and expense. However a major difficulty arises in their calculation. For tendering purposes head office overheads are frequently expressed as a factor of company turnover. The majority of claims in which head office overheads appear as a head of claim use a formula for their calculation in which overheads are related in some way to turnover. The main aim of this paper is to investigate the hypothesis that the decisions taken in numerous common law cases would appear to favour the use of a formula method in the recovery of additional general overheads and profit in claims for loss and expense. The text supports the hypothesis.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | claims; head office overheads; loss and expense |
| Index terms: | overheads, turnover, recovery, profit |
| Subjects: | business management, economic analysis, operations management, financial analysis |
| Topics: | Project Management, Business Strategy, Cost Management |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here