Project overhead is considered what type of cost in a construction project?

Project overhead refers to the costs that are not directly attributable to specific tasks or materials but are necessary for the overall functioning of a construction project. This includes expenses such as project management, office supplies, utilities, and other administrative functions that support the construction efforts without being tied directly to physical labor or materials.

In the context of construction, administrative costs encompass those expenses involved in the management and coordination of project resources and processes, which are essential for project completion. These costs facilitate the operational aspects of the project but do not contribute directly to the labor or physical materials employed on site.

The other categories, such as labor costs and material costs, are direct expenses that relate specifically to workforce payment and raw materials used in the physical construction, while operational costs tend to refer broadly to the costs associated with running business operations, which can include a mix of both direct and indirect costs. Ultimately, project overhead fits most suitably within the realm of administrative costs, as it is fundamentally about maintaining structure and support for the entire project management process.