Source: https://www.quantsurv.com/resources/glossary/head-office-overheads
Content format: Markdown version of the public page.
Content reviewed: 2026-09-30

# Head office overheads: definition and example

The cost of running your business, such as offices and staff, that a delay can leave unrecovered.

By [Jack Butler-Kettle](<https://www.quantsurv.com/about#who-we-are>) · Updated 30 September 2026

Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.

## What it means in practice

Read this alongside [SCL Delay and Disruption Protocol](<https://www.scl.org.uk/sites/default/files/documents/SCL_Delay_Protocol_2nd_Edition_Final.pdf>) and [Walter Lilly & Company Ltd v Mackay \[2012\] EWHC 1773 (TCC)](<https://caselaw.nationalarchives.gov.uk/ewhc/tcc/2012/1773>).

These are business-wide costs such as central administration, office facilities and management. They differ from project preliminaries. A delay may affect recovery of those costs, but a formula result does not prove entitlement, causation or actual loss, and overlapping recovery must be avoided.

Support the claimed loss with accounts and evidence of the delay's effect. [Delay and disruption recovery](<https://www.quantsurv.com/delay-and-disruption/services/delay-disruption-recovery>) can help organise the financial evidence alongside the contractual basis.

## Worked example

### The facts

A subcontractor uses a calculator to explore the effect of an extended project on overhead recovery.

### What happens

1.  It checks the financial inputs against its accounts and the period against project records.
    
2.  It considers whether those costs have already been recovered through another payment.
    

### What this shows

The calculation is an analytical aid, not evidence that the other party owes the displayed amount.

## Sources

1.  [Delay and Disruption Protocol, 2nd edition, February 2017](<https://www.scl.org.uk/sites/default/files/documents/SCL_Delay_Protocol_2nd_Edition_Final.pdf>). Society of Construction Law.
2.  [Walter Lilly & Company Ltd v Mackay & Anor \[2012\] EWHC 1773 (TCC) (High Court, Technology and Construction Court, 11 July 2012)](<https://caselaw.nationalarchives.gov.uk/ewhc/tcc/2012/1773>). The National Archives, Find Case Law.
