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How much overhead costs do you add for a project which involves risk in terms of delay of material delivery from vendors?

<p>I've been adding an amount equal to the penalty in terms of cost from the client for delayed material delivery, however if there are alternatives suggestions would be most welcome.</p>

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Question added by Sarwar Ali Ansari , Project Engineer , AH Al Gosaibi & Bros.
Date Posted: 2014/10/13
Ahmed Jarrad
by Ahmed Jarrad , Project Electrical Manager , ABB Ltd.

Penalties are treated as costs but they're not actual costs to the project. Try adding materials or freight costs, etc. those are more direct and definite

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