Which of the following is an example of a direct cost in construction?

In construction, direct costs refer to expenses that can be directly attributed to a specific project. Labor costs for workers on-site are categorized as direct costs because they are incurred specifically for the labor required to complete the project. This includes wages paid to carpenters, electricians, plumbers, and other tradespeople who are directly involved in the construction process.

Understanding direct costs is crucial for budgeting and financial planning in construction projects, as these costs directly affect the overall project expenditure. They contrast with indirect costs, which are not easily attributed to a single project, such as overhead expenses, legal fees, or insurance premiums that apply across multiple projects.