The indirect costs of a project are those costs related to externalities that are outputs of the project not accounted for in outlays of the government for project components.

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Indirect costs are externalities that are not included in the direct costs or outlays of the government for project components. These costs are often in the form of social, environmental, or economic impacts that may not be immediately visible, but have a long-term effect on the project and the community. Examples of indirect costs include increased traffic congestion or pollution resulting from the construction of a new highway, or the displacement of local communities due to the construction of a dam.

The Indirect Costs of a Project Are Those Costs Related