What Are the Methods of Overhead Allocation?

Remember the old adage: measure twice, allocate overhead once

The best method for allocating overhead in construction is a way that’s fair. After all, the idea is to allocate (or, distribute) costs that each job shares responsibility for — meaning the job either caused or benefited from the cost. But, the costs should also be proportional to that responsibility. Figuring out how to strike that balance is the art of overhead allocation.

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