What must be included when calculating the total cost of a construction project?

When calculating the total cost of a construction project, it is essential to consider labor, materials, and overhead costs. Labor costs refer to the amount paid to workers involved in the construction process, including wages, benefits, and other related expenses. Material costs encompass all the products and supplies needed for the project, such as concrete, wood, and fixtures, which are necessary for completing construction.

Overhead costs are often overlooked but are crucial to accurately determining the total project cost. These expenses include indirect costs that support the construction operation but are not directly attributed to a specific project, such as administrative salaries, utilities, insurance, and equipment maintenance. Including overhead ensures that the financial resources required to manage and operate the construction business are adequately accounted for, providing a more comprehensive picture of overall costs.

The other choices include components like design fees and marketing costs, which, while important in certain contexts, do not encapsulate the core expenses essential to the construction process itself. Thus, focusing on labor, materials, and overhead provides a realistic framework for budgeting and financial planning in construction projects.