What Are The Expenses In Construction Project

WHAT ARE THE EXPENSES IN CONSTRUCTION PROJECT

The cost of the project depends on various large and small expenditure. All these heads can be summarized into two main categories

1.  Direct expenditure

2.  Indirect expenditure

-

1.  DIRECT EXPENDITURE

Direct expenditure may be defined as the actual cost on the construction project example

·       Cost of land

·       Cost of material

·       Labour cost

LAND EXPENDITURE

(DIRECT EXPENDITURE)

The expenditure on land is very different from the cost of land. Therefore, land expenses should be added to the actual amount. the following points are the expenses to be added

·       Legal fees

·       Brokerage

·       Tenant Change (if needed)

MATERIAL EXPENDITURE

(DIRECT EXPENDITURE)

All materials expenditure required for the construction work will come under this category.

Concrete, Cement, River Sand & M-sand, Aggregates, Bricks, Steel, Wood, Glass, Ceramics, white cement, blocks, door frames, door shutter, door fittings, windows, grills, tiles, stone materials, plumbing materials and other miscellaneous materials

LABOUR EXPENDITURE

(DIRECT EXPENDITURE)

All labour expenditure required for the construction work will come under this category.

Foundation work, masonry and plasterwork, plumbing work, Waterproofing work, tile work, carpentry work, electrical work. Painting work, housekeeping etc.

2.  INDIRECT EXPENDITURE

Indirect expenditure can be defined as the cost related to the construction of a building in addition to the cost of material, labour and land.

The following points should be considered for different types of indirect costs.

SANCTION EXPENSES

(INDIRECT EXPENDITURE)

1.   Development Charges (D.C.)

2.   Expenses for paper work

3.   Loan Expenses

4.   Tax for Municipal

5.   transaction charges

PLOT DEVELOPMENT

(INDIRECT EXPENDITURE)

1.   Cleaning plot for levelling

2.   Excavation for foundation and borewell

3.   Cutting trees (if needs)

4.   debris filling (if needs)

5.   sign boards for approach

SITE DEVELOPMENT

(INDIRECT EXPENDITURE)

1.   Initial site development

2.   Fencing and common wall

3.   Interior Road / Access Road

4.   Bore well and pump house

5.   Swimming pool, health club etc.

6.   Gardening and sports equipment

7.   Water pipes, drains and septic tanks

8.   Electrical wiring, transformer foundation and

9.   Street lights

CONSULTANCY EXPENSES

(INDIRECT EXPENDITURE)

1.   Consultant for Architect

2.   Consultant for Structural

3.   Consultant for Plumbing and sanitation

4.   Consultant for Electrical

5.   Consultant for Road

6.   Consultant for Landscape designer

7.   Consultant for Model/ perspective maker

8.   Other consultants

ADMINISTRATIVE EXPENSES

(INDIRECT EXPENDITURE)

1.   Advertisement

2.   Printing and Stationery

3.   expenses for office

4.   Pay of office staffs

5.   Brokerage, donations, etc.

6.   Site office costs

Supervision costs

1.   Engineering Department Fees

2.   Site staff pay

3.   Security costs

SITE RUNNING EXPENSES

(INDIRECT EXPENDITURE)

1.   Cost of Temporary sheds

2.   Cost of Scaffolding and other materials

3.   Machinery running/maintenance expenses

4.   Telephone and electricity expenses

5.   Water and temporary lights expenses

6.   Staff welfare, insurance and medical expenses

7.   Other miscellaneous cash purchases

8.   Daily site running costs

MISCELLANEOUS EXPENSES

(INDIRECT EXPENDITURE)

1.   Anti-termite / other treatments

2.   Additional costs due to changes in the specification

-

HOPE YOU LIKE THIS ARTICLE SUBSCRIBE US OR CLICK THE BELL ICON FOR INSTANT NOTIFICATION

LCETED INSTITUTE FOR CIVIL ENGINEERS

“Our Mission To Educate And Keep People Informed By Creating A Trusted Source Of Knowledge Everything Related To Civil Engineering”. 

PRESS THE BELL ICON TO FOR THE NOTIFICATION

Share