What type of costs are considered direct costs in a quantity survey method?

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Study for the Real Estate Course 3 Exam. Enhance your skills with comprehensive flashcards and multiple-choice questions. Each question comes with hints and explanations. Gear up for your success!

In the quantity survey method, direct costs refer specifically to expenses that are directly tied to the physical construction of a project. This includes the cost of construction materials and labor, as these are essential components in the building process. Direct costs are typically the most significant portion of a project budget and can easily be quantified since they directly contribute to the completion of the construction work.

Costs related to permits, indirect site development costs, and architectural fees are classified as indirect costs. Indirect costs do not directly tie to the physical construction work but rather support the overall management and legal requirements surrounding the construction project. These could include administrative expenses, fees for obtaining necessary permits or approvals, or design costs that facilitate the construction process but do not include the construction materials or the labor that performs the actual building work.

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