Construction glossary term

Direct Costs

Direct costs refer to the costs of the materials and labor that are required for the execution of a construction project. Direct material costs may include items such as lumber, nails, drywall, paint, cement, tile, roofing shingles, concrete foundations or footings. Direct labor costs include any expenses associated with assembling and constructing components on-site (such as framing a wall or installing flooring). These direct costs do not include overhead expenses such as administrative fees or transportation fees. The total cost of direct materials plus the labor involved in their installation is referred to as the "direct cost" of construction.

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