Oregon Construction Contractors (CCB) Practice Test

Project overhead refers to costs that are not directly tied to the specific tasks or labor associated with a construction project but are necessary for the overall administration and operation of the project. Regular office supplies fall into the category of general business expenses and are not usually allocated as project overhead because they do not have a direct impact on the construction work itself. Instead, overhead typically includes costs that are more closely associated with the management and maintenance of the construction site and requirements.

For example, project bonds are essential for securing financial backing for the project, portable toilets ensure proper sanitation for workers on-site, and construction cleanup is necessary to maintain a safe and organized workspace. These costs are directly related to the success and compliance of the construction project and, therefore, are categorized as project overhead. Conversely, regular office supplies, while still significant for business operations, do not belong to this specific classification of overhead costs in the context of project management.