How are overheads costed?
For commercial research and consultancy services: • In the event that a flat fee is agreed with an External Party for a project then the overheads deducted will be 20% of the flat fee. Otherwise a charge of 25% of the salary component (which includes salary on-costs) is applied to the project. The salary costs of all personnel working directly on the project should be included in the salary costing. • If you are using a daily (charge-out) rate (as per the Commercial Research and Consultancy Services Policies and Procedures) an overheads component is already included, and will be levied at 20% of the total charged-out salary rate. For grant applications: • Overhead costs are set at 15% of the total direct costs of the project. However, the guidelines for costing the research will, in part, be determined by the granting body. • Many funding bodies will specifically exclude infrastructure costs from funding support particularly where the funds for research are provided by a philanthropic
