👉 Incurred engineering refers to the costs and resources expended during the design, development, and construction phases of a project that cannot be recovered or reclaimed once the project is completed. These costs include expenses such as design modifications, additional materials, labor overruns, and unforeseen site conditions that necessitate changes to the original plan. Unlike capital expenditures, which are one-time investments, incurred engineering costs arise from the inherent uncertainties and complexities of building projects, requiring adjustments to initial estimates and budgets. These costs are typically documented in project documentation and can significantly impact the overall financial outcome of a construction or engineering endeavor.
