Title: Convergence of the National Regulations of the Republic of Uzbekistan and Global Standards for Calculating and Controlling the Costs of Other Expenses in the Construction Sector
Authors: Firyuza Galimova
Dmitriy Chernyaev
Volume: 10
Issue: 8
Pages: 168-173
Publication Date: 2026/08/28
Abstract:
The effective management of project costs is a decisive factor in the successful implementation of investment and construction projects. Within the structure of estimated costs, a special place is occupied by so-called other expenses, which include overhead costs, contingency reserves, and the associated costs of both the contractor and the client. In the construction practice of the Republic of Uzbekistan, the calculation of these components has traditionally relied on rigid regulatory frameworks and averaged coefficients inherited from a planned economy, whereas international practice resolves the same issue through standardized contract systems and transparent mechanisms for accounting for indirect expenses. This article presents a qualitative comparative analysis of national and international methodologies for calculating and controlling other expenses in the construction sector, based on the primary regulatory and contractual instruments of the Republic of Uzbekistan and the standards of FIDIC, RICS, and the Joint Contracts Tribunal. The analysis shows that the national system is grounded in a cost-statistical, retrospective, and strictly state-controlled approach, while international standards treat other expenses as a flexible commercial variable governed by contractual claims management and probabilistic reserve estimation. On this basis, the study proposes separating overhead into Head Office and Site Overhead components calculated from the Construction Organization Project, and introducing independent cost control, in order to enhance pricing flexibility, strengthen transparency, and reduce investment risks for construction participants.