Which costs are referred to as direct costs in construction?

Direct costs in construction are expenses that can be directly attributed to a specific project or task. These costs include material, labor, and supervision costs, which are essential to the construction process.

Materials are the physical items needed to construct the project, such as concrete, steel, and framing supplies. Labor refers to the wages of workers who are directly involved in the construction activities, including skilled tradespeople and laborers. Supervision costs cover the expenses for personnel who oversee the construction process, ensuring that the project stays on track, adheres to safety regulations, and meets quality standards.

These costs are essential because they represent the tangible inputs required to complete a project. By being directly linked to the construction activities, they are easily quantifiable and trackable, which is crucial for budgeting and financial reporting in construction management. Other costs mentioned, like indirect costs or overhead, do not fall into this category as they are not directly tied to a specific project task.