Direct costs

Costs assigned directly to a particular project or work activity, such as trade labor, materials, and equipment.

Why it matters

The accounting basis matters. Direct costs are not always identical to a lender’s hard-cost category, and allocations should stay consistent across estimates and reports.

In practice

A project example

Concrete materials and placement labor are tracked to the concrete scope.

General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.