Which type of cost, included in the quantity survey method, refers to expenses like permits and surveys?

The correct answer is indirect costs. In the context of the quantity survey method, indirect costs refer to expenses that are not directly attributable to a specific project or activity but are necessary for the overall completion of a project. This includes costs such as permits, surveys, and other administrative expenses that support the construction process but do not involve the physical construction materials or labor directly.

Understanding the distinction between direct and indirect costs is essential in appraisal and project estimation. Direct costs are those that can be clearly identified with the construction of specific components, such as materials and labor used directly on-site. In contrast, indirect costs encompass broader expenses associated with project management, compliance, and regulatory requirements, which, while crucial for the project's success, do not contribute directly to the construction itself. This highlights the importance of accurately accounting for indirect costs in an overall project budget to ensure financial clarity and completeness.