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What is the difference between direct cost and indirect cost?

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Question added by Irfan khan , SAUDI ARAMCO PID Civil QA/QC (CBT Pass) , Intertek Saudi Arabia , Al Khobar Saudi Arabia
Date Posted: 2016/05/05
Shahid Imran
by Shahid Imran , Project Quantity Surveyor , Jasim Qabazard Engineering Consultant

Indirect Cost: Cost of staff, prelim labour,& office expenses during execution of project and tender stage expenses. 

Direct Cost: All the costs associated directly to the project such as material used, labors deployed to the project, equipment depreciation to the project, subcontractors...etc

Direct Cost: simply all the costs associated directly to the project such as material used, labors deployed to the project, equipment depreciation to the project, subcontractors...etc.

 

Indirect Cost: Mainly means the non-related to project costs which shall be paid by the company during the execution of the project starting from tender stages such staff salaries, financial facilities, office bills, office stationary.

 

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