Economic Analysis of Project Cost

The project cost consists of two parts: direct and indirect. The direct cost is the cost of implementing the activities of the project set forth in the drawings and project documents.

The cost of resources to be provided for the implementation of these activities include employment, raw materials, equipment, contractors fees, and other costs. This cost does not include the expenses related to the supervision of the implementation work.

Indirect costs are expenses that cannot be avoided to supervise the works and facilitate the implementation and can also release the term "administrative and general expenses," which is usually fixed during the period of implementation of the project.