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Define the terms direct costs and indirect costs?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/02/02
Sainath reddy Karadu
by Sainath reddy Karadu , Quantity Surveyor , Stup Consultants Pvt. Ltd., (PMC)

In general the terms direct cost and indirect costs  majority reflect in build up of  all in rate   for labor.

Direct costs.

Basic current wage rate

Guaranteed minimum bonus

Site bonus plus Rate

Normal site overtime

In direct cost

National insurance

Training board levy

Holidays with pay ( annual and levy)

Allowances for inclement weather.

Death benefit scheme

Sickness and injury pay.

Employers liability insurance for insurance of third party ,person and property.

Severance pay and sundry costs- absenteeism, abortive, national insurance

It is suggested that other cost consideration

Travelling allowances and fair

Subsistence

Abnormal overtime.

Are considered with project overheads and

Supervision money and time by trade foreman.

Extra payment under working rules.

Are Considered with unit rate build up.

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