Which item is normally classified as an indirect cost in a construction project?
Correct answer: D. Site office administration expense
- A. Concrete placed in a foundation
- B. Bricks built into a wall
- C. Steel reinforcement fixed in a slab
- D. Site office administration expense
Explanation
Site office administration supports the project but is not incorporated into a specific measured work item. Concrete, bricks, and reinforcement are direct costs because they are used in identifiable construction work.
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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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