Which of the following is an example of direct costs in construction?

Direct costs in construction refer to expenses that can be directly attributed to the construction of a project. This includes costs associated with the materials required to build the project as well as the labor needed to carry out the construction tasks.

Material costs encompass the price of all construction supplies such as concrete, wood, steel, and other materials integral to the project. Labor costs involve the wages paid to workers who are directly engaged in the building process. Together, these costs are essential for executing the project and are a fundamental aspect of budgeting and estimating in construction.

In contrast, other options represent indirect costs. For example, while utilities and office supplies may seem significant to the project's administration or operation, they cannot be tied directly to the building process itself. Project management fees and insurance or bonding costs are also generally classified as overhead or indirect costs, as they support the project but are not directly linked to the construction activities.

Understanding the distinction between direct and indirect costs is crucial for accurate cost estimation and financial management in construction projects.