If the equipment was purchased for the project and charged as a direct cost (claiming normal depreciation) then the equipment should be used solely for the project and, if the repair costs are recorded as direct costs in the accounting records of the organization, then the repair will also be direct. If the equipment was not purchased specifically for the project and depreciation not claimed as a direct cost in the project, then the repairs should also be overheads. However, if the equipment was damaged by specific use for the project and the damage would not have occurred if it had not been used for the project, it could be argued that the repair is directly related to the project and if the repair costs are recorded as direct costs in the accounting records of the organization, then the repair will be a direct cost.