What are "on-site" and "Off-Site" costs?

"on-site" are costs associated with the labor and materials used for your home's improvements. Also known as "board and nails" or "Direct Site cost improvements," direct costs typically include items such as lumber, appliances and plumbing -things used in the actual construction of your home. The direct costs will be disbursed based upon the percentage of completion as determined by the inspector. "Off-Site", also called "indirect," are costs not directly related to labor or materials for the actual construction of your home. For example, building permits and architectural fees are off site itemized in the Cost Breakdown section of your Construction Loan Agreement. Builder Overhead/Supervision are disbursed in proportion to the percentage of completion of the home.