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Almashaqbeh, M and El-Rayes, K (2022) Minimizing transportation cost of prefabricated modules in modular construction projects. Engineering, Construction and Architectural Management, 29(10), 3847-67.

Alshboul, O, Shehadeh, A, Al-Kasasbeh, M, Al Mamlook, R E, Halalsheh, N and Alkasasbeh, M (2022) Deep and machine learning approaches for forecasting the residual value of heavy construction equipment: a management decision support model. Engineering, Construction and Architectural Management, 29(10), 4153-76.

Durdyev, S, Mohandes, S R, Mahdiyar, A and Ismail, S (2022) What drives clients to purchase green building?: The cybernetic fuzzy analytic hierarchy process approach. Engineering, Construction and Architectural Management, 29(10), 4015-39.

Egbelakin, T, Wilkinson, S, Potangaroa, R and Ingham, J (2011) Enhancing seismic risk mitigation decisions: a motivational approach. Construction Management and Economics, 29(10), 1003–16.

Ekanayake, E M A C, Shen, G, Kumaraswamy, M, Owusu, E K and Xue, J (2022) Capabilities to withstand vulnerabilities and boost resilience in industrialized construction supply chains: a Hong Kong study. Engineering, Construction and Architectural Management, 29(10), 3809-29.

Hee, C H S and Ling, F Y Y (2011) Strategies for reducing employee turnover and increasing retention rates of quantity surveyors. Construction Management and Economics, 29(10), 1059–72.

Hu, X, Hu, X, Cui, Q, Li, Y, Lemckert, C and Wei, A (2022) Spatial-temporal analysis for the business performance of construction consultancy services in China. Engineering, Construction and Architectural Management, 29(10), 3997-4014.

Igwe, C, Nasiri, F and Hammad, A (2022) An empirical study on non-physical waste factors in the construction industry. Engineering, Construction and Architectural Management, 29(10), 4088-106.

Khan, N A, Hui, Z, Khan, A N and Soomro, M A (2022) Impact of women authentic leadership on their own mental wellbeing through ego depletion: moderating role of leader's sense of belongingness. Engineering, Construction and Architectural Management, 29(10), 4191-214.

Larsen, G D (2011) Understanding the early stages of the innovation diffusion process: awareness, influence and communication networks. Construction Management and Economics, 29(10), 987–1002.

Ma, G, Jiang, S and Jia, J (2022) Investigating the adoption of social media in the construction industry: empirical evidence from project teams in China. Engineering, Construction and Architectural Management, 29(10), 3948-69.

Marzouk, M, Elsaay, H and Othman, A A E (2022) Analysing BIM implementation in the Egyptian construction industry. Engineering, Construction and Architectural Management, 29(10), 4177-90.

Mbachu, J (2011) Sources of contractor’s payment risks and cash flow problems in the New Zealand construction industry: project team’s perceptions of the risks and mitigation measures. Construction Management and Economics, 29(10), 1027–41.

Oladinrin, O T and Ojo, L D (2022) Characterisation of the drivers of environmental management system implementation. Engineering, Construction and Architectural Management, 29(10), 3868-92.

Olbina, S, Hinze, J and Arduengo, C (2011) Drug testing practices in the US construction industry in 2008. Construction Management and Economics, 29(10), 1043–57.

Rezaei Nasab, S S, Tayefi Nasrabadi, A, Asadi, S and Haj Seiyed Taghia, S A (2022) Investigating the probability of designing net-zero energy buildings with consideration of electric vehicles and renewable energy. Engineering, Construction and Architectural Management, 29(10), 4061-87.

Saad, S, Alaloul, W S, Ammad, S and Qureshi, A H (2022) A qualitative conceptual framework to tackle skill shortages in offsite construction industry: a scientometric approach. Engineering, Construction and Architectural Management, 29(10), 3917-47.

Shooshtarian, S, Caldera, S, Maqsood, T, Ryley, T and Khalfan, M (2022) An investigation into challenges and opportunities in the Australian construction and demolition waste management system. Engineering, Construction and Architectural Management, 29(10), 4313-30.

Singla, H K and Sridharan, S (2022) Factors influencing the level of accuracy and compromise in overhead estimation for construction projects in India: an exploratory investigation. Engineering, Construction and Architectural Management, 29(10), 4040-60.

• Type: Journal Article
• Keywords: accuracy; compromise; estimation; India; indirect cost; overheads; projects
• ISBN/ISSN:
• URL: https://doi.org/10.1108/ECAM-04-2021-0362
• Abstract:
  Purpose: Previous studies have highlighted that overheads form a critical part of the total project cost. However, despite this knowledge, the precise estimation of overheads is often neglected in construction projects. This paper aims to examine the reasons for the lack of effort in estimation of overheads. Design/methodology/approach: The study is carried out in three stages. In stage one, an introductory survey is carried to understand the importance of overheads in total project cost. In stage two, a detailed survey is carried out to understand the factors that affect the level of accuracy and compromise made in estimation of overheads using partial least squares structural equation modeling (PLS-SEM). In the final stage, two cases are examined in form of interviews to validate the findings. The model is tested for its reliability, validity and goodness of fit. Findings: The findings of the study suggest that the time and cost spent is a critical issue. Therefore, if the projects feel that the benefit cost ratio for time and cost spend in the process is positive, they estimate the overheads accurately, whereas if they feel that the cost benefit ratio for time and cost spend is negative, they compromise with accurate estimation. Further, there is a lot of subjectivity in defining and processing overheads that leads to a negative impact on the accuracy level in estimation of overheads. The contract type also influences the compromise in estimation. Research limitations/implications: First, there is scant work that has been carried out on understanding the behavior of overheads and reasons for lack of effort in its accurate estimation in construction projects. Therefore, there are no recent citations in the study. Further, the study being exploratory in nature draws conclusions based on opinion expressed by respondents on survey and interview. Finally, the study is geographically limited as the entire respondent's work in India. Practical implications: Projects should give due attention to accurate estimation of overheads. Accurate estimation of overheads can help in better control of project margins, thereby serving the profit-maximizing goals of organizations. A conscious effort by industry experts, academicians and researchers can bring some discipline in overhead estimation rather than leaving the critical domain only to thumb rules or experiential assumptions. The regulatory bodies and the project management bodies are advised to come up with some kind of ready reference that can quickly help estimators to arrive at accurate overhead costs. Originality/value: To the best of knowledge, it is a rare study to exclusively focus on project overhead cost in construction industry and focus on its estimation efforts. The study also uses a robust research process, which improves the reliability and validity of its findings.

Tandon, U, Mittal, A, Bhandari, H and Bansal, K (2022) E-learning adoption by undergraduate architecture students: facilitators and inhibitors. Engineering, Construction and Architectural Management, 29(10), 4287-312.

Wan, X, Zhang, Y, Mao, P, Li, H, Wang, R, Yi, X and Zhao, X (2022) How perceived corporate social responsibility and public knowledge affect public participation intention: evidence from Chinese waste incineration power projects. Engineering, Construction and Architectural Management, 29(10), 4107-31.

Wang, Z, Liu, J and Guan, X (2022) Investigating the causal complexity of corruption in project-based organizations: a scenario analysis of bidding activity in the Chinese construction sector. Engineering, Construction and Architectural Management, 29(10), 3893-916.

Wilkins, J R (2011) Construction workers’ perceptions of health and safety training programmes. Construction Management and Economics, 29(10), 1017–26.

Yi, H (2022) 4D-printed parametric façade in architecture: prototyping a self-shaping skin using programmable two-way shape memory composite (TWSMC). Engineering, Construction and Architectural Management, 29(10), 4132-52.

Zhang, L, Yuan, J, Ning, Y, Xia, N and Zhang, G (2022) Enhancing the impacts of absorptive capacity on interorganizational collaboration in BIM-enabled construction projects – an SLT perspective. Engineering, Construction and Architectural Management, 29(10), 4215-40.

Zhang, Y, Wang, J, Ahmad, R and Li, X (2022) Integrating lean production strategies, virtual reality technique and building information modeling method for mass customization in cabinet manufacturing. Engineering, Construction and Architectural Management, 29(10), 3970-96.

Zhao, X and Pan, W (2022) The characteristics and evolution of business model for green buildings: a bibliometric approach. Engineering, Construction and Architectural Management, 29(10), 4241-66.