Direct and Indirect Project Cost

Project cost consists of direct cost components such as labour, materials, machinery and equipment costs. Also, an overall cost may include indirect cost, frequently referred to as overhead expenses: rent and utilities, some general and administrative expenses, or even some portion of accounting and human resource department costs.

Organisations have business rules of how indirect cost has to be applied. Usually, it is a percentage of overall direct cost or specific cost components.

Spider Project allows applying formulas to cost components for easy calculation of indirect project cost, based on unique organisational business rules.

Such an approach allows understanding of the “cost of delay” when the indirect cost increases overall project cost if the project takes longer than expected.  

See how inderect project cost & schedule integration work in Spider Project:

Julia Lyaschenko

PMO | Program Planning & Delivery Specialist | PRINCE2© Practitioner | SAFe© Agilist (SA)