Question

The total project cost consists of two components namely front cost and indirect cost.

(a) True

(b) False

The question was asked during an interview for a job.

Asked question is from Office, Shop Building in portion Methods of Building Estimate & Estimate of Building of Civil Engineering Drawing

Answer 1

The correct answer is (b) False

For explanation I would say: The total project cost consists of two components namely direct cost and indirect cost. Direct cost includes cost of materials, equipment and labour associated with each item of work and  also includes cost of subcontracted works. Indirect costs are the costs which are not associated with each item of work rather these costs are calculated for the entire construction work and includes overhead costs (both job office or site office overhead and general head office overhead), contingency i.e. cost for any unforeseen work and profit.