What is one of the major factors affecting direct costs in a project?

One of the major factors affecting direct costs in a project is the occurrence of insurance claims. When accidents or incidents happen on a construction site, they can lead to significant financial implications due to claims filed against the project's insurance. This can increase overall costs through direct payouts for damages, legal fees, and potential increases in insurance premiums.

Moreover, the presence of insurance claims can disrupt project timelines and workflows, leading to additional costs associated with delays and necessary remedial actions. Thus, insurance claims directly impact the financial aspect of a construction project, making it a critical factor in managing direct costs.