If special tools are needed for a job, where should their cost be included?

Including the cost of special tools in the equipment estimate is appropriate because specialized tools are often considered vital equipment necessary for completing specific tasks associated with a job. When preparing an estimate, categorizing expenses correctly helps in accurately assessing the total project costs.

Special tools may not fall under labor or general overhead, as these categories typically cover direct labor costs or indirect costs related to running a business, rather than specific tools associated with a job. By placing such costs in the equipment estimate, it ensures they are linked directly to the related costs for mobilization and usage of that equipment throughout the project, allowing for a precise calculation of overall expenses tied to project execution.

Recognizing these costs in the correct context is crucial for both budgeting and forecasting, which can significantly impact the success and profitability of a project.