Direct costs (also known as project overhead costs) are those directly linked to the physical construction of a project. Material, labor and equipment prices are all direct costs, as are subcontractor costs. They are also sometimes called “bare” or “unburdened” costs.
Which of the following is a direct cost of a project?
The most commonly used direct costs budget categories include: salaries and wages, fringe benefits, equipment, travel, materials and supplies, participant support costs, publication costs, consultant services, computer services, subawards.
What are the examples of indirect costs in construction?
This might for example include; rent, insurance, advertising and marketing and so on. These types of indirect costs may be referred to as overheads. This is as opposed to direct costs, which are those costs incurred directly by production and include items such as raw materials, labour, equipment, power and so on.
What is the cost to complete construction?
Cost to Complete means the sum of all qualifying costs necessary to complete a construction project and documented in an approved construction budget.
What is an example of direct cost in construction?
- Labor Costs: The wages and salaries of workers directly involved in the construction project, such as welders, carpenters, electricians, and laborers.
- Material Costs: The cost of construction materials, including concrete, steel, lumber, and other materials required for the project.