Which of the following is considered project overhead?

Project overhead refers to the costs that are necessary to complete a project but cannot be directly attributed to specific labor or materials. These costs typically include various indirect expenses that support project operations. Items necessary to complete the project but not directly associated with labor are a classic example of project overhead, as they encompass things like site utilities, administrative support, insurance, and permits—essentially the expenses that keep the project running but don't directly tie to specific construction activities.

In contrast, labor costs, materials costs, and direct equipment expenses are categorized as direct costs, as they are directly related to the construction work being performed. Understanding project overhead is crucial for accurate budgeting and overall project management, as it impacts the total project cost significantly.