Cost Analysis

Cost Analysis
 Direct Cost

Direct labor cost:

• Direct labor cost = Daily labor cost X the number of compensable late days.

• The cost of lost productivity.

• The Contractor must prove the necessity of remaining unemployed on the site
because the Employer will question the Contractor regarding the reasons for not
transferring the unemployed workers to other locations or laying them off.
 Indirect Cost
 Wages of indirect labor such as engineers, supervisors, technicians, administrators, accountants and other
workers on the site.
 The cost of site equipment such as winches, generators, loaders, and others, including the cost of rent,
maintenance, operation, depreciation and insurance.
 Maintenance cost for entrances, roads, fences, and utility maintenance.
 The cost of protecting the site during the delay.
 The cost of temporary facilities such as water, electricity, etc., and any expenses paid to government
agencies.
 The cost of the laboratories at the site and the equipment in it during the delay period.
 Cost of storing and protecting materials on site.
 Cost of formwork, scaffolding and temporary ladders.
 The cost of cars and transportation for site workers.
 Expenses of temporary offices from depreciation of printers and computers, renewal of licenses for
computer programs, the cost of the buffet, and others
 The cost of renting rest and accommodation
 The cost of extending insurance policies
 The cost of extending letters of guarantee
 The increase in the cost of financing and bank facilities due to the increase in project time