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Construction Glossary >
Job Cost Structure
Construction glossary

What is a Job Cost Structure?

A Job Cost Structure in the construction industry refers to the detailed categorization and allocation of costs associated with a specific construction job or project. These costs are typically divided into direct and indirect costs. Direct costs include materials, labor, and equipment used specifically for the project. Indirect costs, also known as overheads, include costs that support the project such as administrative expenses, insurance, and utilities. The job cost structure enables managers to monitor project expenses closely, helping in managing budget and ensuring project profitability. It is a fundamental element in construction project management, improving cost control and financial accuracy.