I have a project that a client has agreed to fund that has been costed and written on a consultancy basis. How are overheads apportioned from the total amount?
As the project scope was costed and written on a consultancy basis this means that overheads/oncosts are included in the total project cost. JCU levies the GST exclusive total by 20% to cover overheads. The remainder is what is left to pay salary + oncosts and consumables for the project. Where the total price is a lump sum (there is no budgetary breakdown) – and it is not unusual with consultancies for a client to offer a lump sum – the price will be treated as if it is for salaries only, i.e. overheads will be levied at 20% of the total sum.
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