Construction Management Practice Exam

An increase in indirect costs in a project is commonly associated with an increase in duration. Indirect costs, such as overhead, administrative expenses, and financing costs, often accumulate over time. If a project takes longer to complete than initially planned, these costs will increase as the project extends beyond its scheduled duration. While quality and direct costs can also influence project expenses, they do not have a direct correlation to the overall increase in indirect costs in the same way duration does. Quality improvements may raise both direct and indirect costs but are not a primary driver of the increase in indirect costs like duration is. On the other hand, while direct costs could impact the overall budget, they typically refer to expenses that can be directly allocated to a specific task or activity within the project rather than the accumulated costs incurred over a prolonged project timeline. In this context, focusing on the duration of the project highlights how a delay can significantly increase indirect costs, making it the most accurate factor in this situation.