Dual Overhead Rate Recovery is used in construction contracting as a costing equation for bidding a project, costing an existing project or allocating corporate overhead to multiple divisions of construction work. It produces two rates, 1) Labor / Equipment Rate 2) Material / Subcontract Rate. This equation produces a percentage allocation of each class of cost. [1]
References
- ^ Steven Cohan (2018). Business Principles for Landscape Contracting. Taylor & Francis. pp. 70–75. ISBN 9781351847087.