A Study Results And Results Of Interviewing Sr Essay

1061 Words Jul 15th, 2015 null Page
To sum up, based on the study results and the results of interviewing Sr. Humphreys, who is the senior estimator in G.L.Y Construction with 19 years of experience, it seems that the ratio of the general overhead to the total revenue is fluctuated from year to year as total revenue changes. In general, based on how many projects the company has in a year, we determine a target ratio that we shoot for, which is about 5-6% or less in some cases.

According to Humphreys, GLY Construction does not usually allocate general overhead costs to the construction projects unless it is related to the project. The essential reason for not allocating the general overhead to project is GLY Construction is an open book with almost all of their clients. However, in case they are off on their GC’s then we either have to ask the owner for more money. This situation comes out of contingency or it comes out of our fee.

Basically, the general overhead cost is allocated to each construction project directly. By this, GLY uses neither the contract amount nor the ledger cost methods to cover the general overhead. If there is a specific general overhead cost that is going to be needed on a project, then the cost will be within the project cost and the time/material will be charged accordingly. The main reason for this approach is due to every project the company is going to construct for its clients is different from the other projects based on different criteria such as the owner and how the project…

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