国際会計研究ジャーナル

概要

An Investigation of Construction Company Overhead Costs in Guyana

Ferzon Aziz, Christopher Willis

This study investigates construction company overhead (OH) on government projects in Guyana using a questionnaire survey. The survey examines contractors’ awareness of OH costs, perception of OH costs, and the methods adopted by contractors to allocate and control OH costs. The questionnaire consists of 12 questions developed from literature. A total of 47 contractors participated in this study. The results indicate that company OH costs have increased in the last five years and are generally high among contractors mainly because of cost inflation, payment delays and government regulations. Direct project cost is used as the principal allocation base for company OH costs and the type of contract; project complexity, size, and location affect the allocation of company OH costs to projects. The main contributors to company OH costs are automobile and equipment expenses, financing costs, insurances and taxes. However, many contractors are taking steps to reduce OH cost levels to remain competitive and in their business. The contribution of this paper is the first study of OH costs in Guyana that identified the key attributes of company OH. This paper will be of interest to OH costs researchers and practitioners managing finance for government projects.