What is Direct Costs?

Direct costs in construction refer to expenses that are directly attributed to the construction project. These costs typically include materials, labor, equipment, and subcontractor costs. Materials such as cement, steel, wood, and other building supplies are essential for the construction process and are considered direct costs. Labor costs refer to the wages of workers directly involved in the construction project, such as carpenters, electricians, and plumbers. Equipment costs involve the rental or purchase of machinery and tools needed for construction tasks. Subcontractor costs are expenses paid to external companies or individuals hired to perform specific tasks within the construction project.Direct costs are crucial for estimating the total budget of a construction project accurately. By identifying and tracking these costs, project managers can ensure that the