When developing a project, special attention should be paid to various types of costs. When carrying out cost estimation, indirect costs are taken into account. We are talking about Indirect costs in construction - indirect costs in the construction industry. Let's figure out what they are and what features can be noted.
Features of indirect costs
Costs of this type are not related to materials and labor. However, they are an integral element of the successful completion of any construction project. Costs of this type are borne by the contractor. What types of indirect costs can be distinguished:
- Overhead costs. These include office rent, insurance, and utility bills.
- To the general conditions. They include construction supervision, payment for temporary structures, etc.
- For wages. These are used to generate funds for paying money to surveyors, accountants, etc.
- For project management. Such costs include payment of wages to the manager, engineer, etc.
Indirect costs play an important role in the formation of the budget for the construction of any facility. Therefore, they must be taken into account for an accurate and fair estimate of total costs. They will help maintain the financial stability and development of any company.
