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Indirect Costs/Overhead Policy

All research contracts must include provision for the recovery of indirect costs. Indirect costs, also known as research “overhead”, commonly include, but are not limited to, building use and depreciation, equipment depreciation, physical plant and maintenance (including utilities, hazardous waste disposal, security) insurance, research administration, financial administration (including purchasing and accounting), academic administration human resources, and libraries.

Rates 

  • Indirect costs are charged at 40% of total direct costs 
  • In the case of equipment purchases, indirect costs of 15% are applied to the first $100,000 and 10% on any amount in excess of $100,000 
  • When support for graduate students, postdoctoral fellows and/or honours students is included in the contract budget: o
    • the full indirect cost rate at 40% will be charged on total direct costs where the students or fellows have been hired to undertake research which is not part of their ongoing program of research (i.e., the research will not be incorporated into their thesis, dissertation, or senior level project). 
    • Indirect costs of 20% on support for graduate students, postdoctoral fellows and/or honours students where the research to be carried out by the students or fellows will be incorporated in whole or in part into their ongoing program of research, but will also constitute a deliverable which is to be owned by the sponsor of the research. The rate of 40% will apply to all remaining costs unless other exceptions apply. 
    • Indirect costs are not charged where the ownership of the work remains with the university and the student/fellow, and where the results of the research will be incorporated into a thesis, dissertation, or senior level project. The rate of 40% will apply to all remaining costs unless other exceptions apply.

For further details, please refer to Memorial’s policy on the Indirect Costs of Contract Research. In the case of any variation between the information on this page and the official policy, the terms presented on the policy web site shall prevail.

The Indirect Costs of Contract Research policy is university-wide with respect to indirect costs associated with contract research. This policy does not deal with the annual allocation provided by the Tri-Council towards the indirect costs of research, nor does it apply to research grants.