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Direct Or Indirect Labour

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Direct Or Indirect Labour

Postby Foster » Tue Apr 25, 2017 4:27 pm


We are dealing with Fiddic 99contract  we are evaluating prolongation cost wheather Foreman ,surveyor,chainman,safety labour,ganger,cook,campboy should we consider Direct labour or Indirect labour please comment
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Joined: Tue Feb 11, 2014 4:38 pm

Direct Or Indirect Labour

Postby taryn31 » Tue Apr 25, 2017 11:52 pm

Dear Junaidi,

Direct and Indirect can be categorised as follows ;

Direct Costs: Any costs that can be specifically identified with a particular activity of the Project. Such as materials directly utilised for an activity, plant and equipment, their operators, manpower directly utilised for such activities. During tender stage, when you prepare a cost analysis of certain activity you may consider such expenses directly involved in the physical construction of the permanent facility.

Indirect Cost: Costs incurred for common or joint objectives which can not be identified specifically with a particular activity. It includes field administration, supervision, mobilization, insurance, food&accomodation expenses of the staff, etc.

Therefore, Construction Foreman, Surveyor, Welder, Operator, etc which involved in direct execution can be categorised as direct, while Project Manager, QA/QC Manager, safety labor, cook, campboy can be considered as indirect.

Best regards

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Joined: Fri Apr 01, 2011 5:19 am

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