Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-08-18
AVERAGE OVERHEAD COST
SIX 0NE-HALF PER CENT
Pennsylvania Overhead Cost Is
Three Per Cent Higher
Than Virginia.
LATE CONTRACTS AN EXAMPLE,
Average Cost for Work Done in
Different Sections OF State During
Month of June Was Less Than
4 Per Cent.

The overhead expense Of the Vir-
ginia Highway Department which in
cluueS both engineering and admins
tration expenses. averages from Ga
To u per cent of the cost of con-
struction OF rirginia's State high
ways. according to the statement Of
George Il. coleman, State Highway
Commissioners. That this percentage
Is low may be gathered from re-
cent statement to the effect that the
Delaware overhead expense averaged
IA per cent. while that of the State
of North Carolina at present is Il little
ware overhead expense averaged 6l-i
per cent while that of the State Of
North Carolina at present is a little
less than 10 per cent. This higher
percentage for North Carolina is due
To the reorganization of the State
highway department preparatory to
handling the big $50000,O0O which
called for a large number of surveys
and additional engineering work. lie
expected to greatly reduce the per-
centage of overhead by next year and
Get IL down tn approximately the
amount of the state OF Delaware.
o Per Cent In Prnnsy l>nnin.
According 10 the statement from an
authoritative source. the overhead in
PENNSYLVANIA is approximately 3 per
cent. In the State Of California. the
report Of the survey made by the
United States Bureau Of Public Roads
during 1920 states. The total aver
age percentage of construction costs
on both day labor and contract work.
chargcable to administration, cngi-
nccrins and overhead is 1886 per
cent. and is reasonable"
The records Of the Virginia High
way Department show the actual en-
rinccrinE expense chargcablc 10
every project under way An exam
ination OF the Federal aid project
cost records as of June 30 Of this year
for example. show that the engineer
ing expense runs from > To 10 per
cent Of the total construction costs
to date of report, the average being
less than per cent The highest
percentage OF engineering expense oc-
ours with grading or soil road con-
Struction. This is du. to the fact
that almost as much engineering
work is required to meet the Fed
cral aid regulations as to grade.
drainage and location on grading
or soil road project as would hc re-
quircd for road surfaced with con-
crete. The government maintains
that tn" only thing permanent about
road is its location. grade and
drainage. ana these things must he
rs near correct as it is possible To
obtain them.
Percentage for June. 1921.
Examples Of the percentage OF en-
rin"crinS expense IL the total cost
of construction have been taken at
random from the cost sheet OF June
30 as follows:
Washington County, Grerndale to
Russell County line, grading and
drainage, 6.SI miles. total cost of
work done June 30, s9o.435.l7. cngi-
nc.rins expense, S5,5SS.2O, or 81 per
cent.
Caroline Essex Counties, pinhook
tn Loretta top soil. 4.7l miles: total
cost Jun. 30. $3a.SOS.l0. with cms.-
ncering expense, $3.2Tl.G2, or 10 per
cent.
ISappahannock County Culpcpcr
County line To Piedmont. water
bound macadam. 30 miles: total al
lotmcnt, Sli7.202.5o; total amount en-
pended I" June 20. S39.2S9O3, with
engineering expense, S2.O5G.76. or %
per cent.
Nans-mond County. Suffolk to Will
roys. concrete 5.i2 miles: total cost.
siS9.l7+.6i, with engineering expense,
S5.S3l.S7. ar per cent.
Campbell County. liarvcy's store to
Castle Craig hituminous macadam
I'll miles: total cost, $iO0.l23.S5. with
engineering expense, S3.n3S4J, or 3
per cent.
Roanoke. Eoictourt and bedford
Counties. HonSack to blue Ridge
hiiuminous- macadam, 90 miles: to-
tai allotment. $3lI.l7i.i?. total cost
I" June 20. S76.92i.Sl. with engineer
ing expense OF $e.+50.l2. or 3 per
cent.
Where the project has not been
completed, the percentage OF engi-
nccrins expense is necessarily higher,
hs the greater part of the engineering
expense is incurred before actual
work has been started in the way
OF location. grade lines. plans and
specifications, etc. After the work is
under way the engineering expense
only consists of the cost of the en-
finecring party on the job and in
spcction.