What should be included in the cost of a construction project?

Engineering costs are divided into direct and indirect categories. Direct costs consist of labor costs, material costs, machinery usage costs, and other direct expenses. The components of each are as follows: Labor costs refer to the wages, bonuses, wage supplements, as well as allowances of a wage nature and labor protection expenses of the workers involved in the construction work, as specified in the budget quotas. Material costs refer to the amortization and rental expenses of raw materials, components, semi-finished products, auxiliary materials, as well as reusable materials that are included in the budget quotas and form the physical structure of the project. Mechanical usage costs refer to those included in the budget quota, encompassing the costs associated with using own construction machinery during the construction process, as well as the rental fees for machinery borrowed from external parties, along with costs related to installation, dismantling, and transportation of such machinery. Indirect costs refer to various expenses incurred by the units directly involved in construction for organizational management during the construction process. Including salaries, bonuses, allowances for managers of construction units, administrative expenses for employee benefits, depreciation and repair costs of fixed assets, material consumption, amortization of low-value consumables, utilities for management purposes, office expenses, travel expenses, inspection fees, project warranty costs, labor protection expenses, and other costs