Types of costs for buildings
The idea of ‘cost’ in relation to buildings is not a simple one, as there are a wide range of different types of cost. This article provides a brief summary of those types, with links to sources of additional information.
Capital costs are those costs associated with one-off expenditure on the acquisition, construction or enhancement of significant fixed assets including land, buildings and equipment that will be of use or benefit for more than one financial year.
For more information see: Capital costs.
 Building operating costs
Building operating costs are the costs incurred gy the day-to-day operation of the building, which might include; utilities costs, maintenance and repairs, general and administrative expenses and so on.
 Business operating costs
Business operating costs may include building operating costs and also other operating costs such as; rent, wages and so on.
Life cycle costing is an economic assessment of the discounted net present value of life cycle costs, carried out using profiles of current and future costs and benefits. There is increasing emphasis on life cycle costing to ensure all costs are taken into account during the decision-making process, not just those for capital investment.
For more information see: Life cycle costing.
For more information see: Whole life costs.
Generally this refers to the actual, total construction cost calculated at the end of the project, but it may also refer to the cost of a specific contract, or to costs incurred over a defined period. This contrasts with cost estimates, or target costs, which are calculations of the cost that is expected, or the cost that should be achieved.
For more information see: Out-turn cost.
 Other types of costs
Other aspects of cost might include environmental cost, social cost and so on.
 Related articles on Designing Buildings Wiki
Featured articles and news
In the week of the momentous Heathrow decision, we look back at the development and design of T5.
BSRIA’s flagship event will address performance and wellbeing beyond compliance.
Young Architects and Developers Alliance launched to build the relationship between the two disciplines.
BS 8536-2:2016 Design and construction: Code of practice for asset management (Linear and geographical infrastructure).
Paying for off-site goods or materials can be useful, but it puts the client at risk.
People power can be transformative if properly informed and inspired.
ZHA win competition to build an Urban Heritage Administration Centre in Saudi Arabia.
Leaps, not steps, are needed to avoid a ticking time bomb, say BRE in response to Farmer Review.
A multi-purpose hall in France covered in a translucent orange membrane.
Winning designs revealed for a rock formation-influenced residential complex in Rennes.
An article explaining the techniques, regulations and environmental impacts of carbon capture and storage.
Watch one of the first documentaries by the acclaimed Adam Curtis, examining the substandard system building of the 1960s.