Which item is normally classified as a direct cost of a building project?
Correct answer: C. Concrete incorporated into the structural work
- A. Audit charges for the contracting company
- B. Site office rent for the contractor's head office
- C. Concrete incorporated into the structural work
- D. Interest on the contractor's general bank loan
Explanation
Concrete used in the specified work can be traced directly to that project, so it is a direct cost. General office, audit, and finance expenses are usually indirect costs unless specifically assigned.
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About Construction Management and Estimation
Construction management covers planning, scheduling, resource control, contracts, procurement, site organisation, safety, quality assurance and project documentation. Estimation includes quantity take-off, rate analysis, bill preparation, valuation and cost control, with attention to the difference between direct and indirect costs and between an estimate, a tender and a final account.
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