Which term refers to the overall expenses on a construction project that are not directly tied to labor or materials?

The term that refers to the overall expenses on a construction project that are not directly tied to labor or materials is "overhead." Overhead costs include a variety of expenses that are necessary for the project but do not directly contribute to the physical construction. These can encompass administrative expenses, utilities, equipment rentals, insurance, and office supplies, among others.

Understanding overhead is crucial in budgeting and cost estimation, as it helps project managers allocate funds appropriately and ensure that the project remains financially viable. By accurately tracking overhead costs, construction businesses can maintain profitability despite variations in labor and material costs which can fluctuate based on market conditions.

In contrast, fixed costs refer to expenses that remain constant regardless of the level of production or activity, such as rent and salaries for permanent staff. Variable costs fluctuate directly with the project activity level, relating to costs tied to labor and materials. Contingency costs are additional funds set aside to cover unexpected expenses that may arise during the construction process.