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Direct Or Indirect Labour

PostPosted: Tue Apr 25, 2017 4:27 pm
by Foster

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

Direct Or Indirect Labour

PostPosted: Tue Apr 25, 2017 11:52 pm
by taryn31
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