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Question:

What are the five major cost components of the project cost?

What are the five major cost components of the project cost?

Answer:

Material cost means the amortization of the raw material, structural parts and semi-finished products, auxiliary materials, and turnover materials and the rental costs of the raw materials, components, fittings and semi-finished products, auxiliary materials, which are included in the budget. Mechanical use fees refer to the contents of the quota included in the budget, the mechanical use fees incurred in the construction process and the rental fees of the construction machinery leased by the outside units, and the fees for installation, disassembly and entry and exit
Labor costs, material costs, machinery fees, other direct fees, indirect fees (including temporary facilities and on-site management fees)
. Indirect costs refer to the units directly engaged in construction for the organization and management of the expenses incurred during the construction process. Including the management of the construction units in wages, bonuses, allowances and welfare expenses administrative expenses, fixed assets depreciation and repair costs, material consumption, low value consumable amortization, management for utilities, office expenses, travel expenses, inspection fees, engineering guarantee fee and labor protection fees and other expenses.
The cost of the project is divided into two parts: direct and indirect. The direct cost consists of labor, material, mechanical and other direct costs. Their composition is as follows: labor cost refers to the budget quota, engaged in construction personnel wages, bonuses, wages, surcharges, and wages of the Jin, labor protection fees.

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