Indirect costs

Costs supporting work that are allocated rather than traced exclusively to a single production activity.

Why it matters

Job overhead and company overhead may be treated differently. Indirect costs are not a synonym for all owner soft costs; identify the budget and accounting conventions being used.

In practice

A project example

Site supervision supports several trades rather than one installed building component.

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.