The construction and installation project cost, referred to as "Jian 'an cost" or "project cost", refers to all kinds of production costs consumed in the construction of construction and installation projects. The cost of construction and installation project is divided into direct cost, indirect cost, management fee and financial cost according to whether it is directly used in the construction process.

direct expenses

Direct cost refers to the direct consumption of building installation, including: 1, and material cost refers to the cost of purchasing various building materials, such as steel bars, cement, sand and gravel, etc. 2, labor costs, refers to the wages and welfare expenses of workers directly engaged in engineering construction; 3, machinery use fee, refers to the cost of using construction machinery in engineering construction; 4. Other direct costs, such as on-site construction water, electricity, night construction fees, winter and rainy season construction fees, etc.

overhead expenses

Indirect expenses refer to the expenses incurred by the construction unit for organizing and managing the construction production activities, including the wages of the management personnel of the construction unit, employee welfare expenses, depreciation expenses, office expenses, travel expenses and transportation expenses, labor protection expenses, etc.

Management expenses and financial expenses

The direct cost and indirect cost of the project constitute the construction cost, and the shared management and financial costs constitute the complete construction and installation cost.