OPTIMIZATION OF OVERHEAD COSTS OF A CONSTRUCTION CONTRACT

The issue of overhead costs is solved individually within each company. General overhead costs are based on the previous financial year. A plan for next year is created from this data which is reflected in the calculation of each contract. However, it is also important to take into account the type of production, since different types of works are set at different overhead production costs. There are not a lot of scientific references which deal with production overhead costs especially in the construction industry in the Czech Republic. The aim of the article is to optimize overhead costs for different types of productions. The paper focuses especially on the construction production with types of construction works such as roads, bridges, sewerage and others that are further analyzed. In the frame of the used methodology, it is necessary to divide constructions according to the nature of the works with description as accurate as possible. Constructions are divided according to the type of works and especially by the volume of work, as the construction of small-scale works have a problem with overhead production costs more often than companies of larger sizes. All this is presented on the basis of examples from the construction area of bridge, roads, sewerage constructions, etc. The result of the article is to allocate the value of individual overhead costs and provide more precise specification for individual construction contracts for which it is necessary to take account of the character (nature) of construction contracts. Depending on the type of construction, the proper method is used to determine the overhead costs.