Cost vs price
The terms 'cost' and 'price' are are frequently confused with one another and used incorrectly. However, their meanings are clear, and very different:
- The term 'cost' refers to the expense incurred in the production of a product or service.
- The term 'price' refers to the payment required for the supply of a product or service.
Typically, in many businesses, the difference between what something costs to produce, and the price it is sold for equates to the profit earned by the producer / seller.
However, in the construction industry, the term cost typically refers to the expense incurred in relation to building works. It can also be used to refer to:
- Wider project costs incurred by the client, such as fees, finance charges, land purchase costs and so on.
- Long term costs such as lifecycle costs, whole life cost and so on.
Costs commonly incurred on a construction project can be categorised as hard costs (those related to physical construction) and soft costs (those that are not instantly visible or tangible).
In the construction industry, the term 'price' typically refers to the price offered by a supplier. This could relate to a price for carrying out part of the construction works, for the supply of goods, for the supply of services and so on.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
A now architectural practice looks back at its concept project for a sustainable oceanic settlement 25 years on.
Copyright and Artificial Intelligence
Government report and back track on copyright opt out for AI training but no clear preferred alternative as yet.
Embedding AI tools into architectural education
Beyond the render: LMU share how student led research is shaping the future of visualisation workflows.
Why document control still fails UK construction projects
A Chartered Quantity Surveyor explains what needs to change and how.
Inspiration for a new 2026 wave of Irish construction professionals.
New planning reforms and Warm Homes Bill
Take centre stage at UK Construction Week London.
A brief run down of changes intentions from April in an onwards.
Reslating an ancient water mill
A rare opportunity to record, study and repair early vernacular roofs.
CIOB Apprentice of the Year 2025/26
Construction apprentice from Lincoln Mia Owen wins this years title.
Insulation solutions with less waste for a circular economy
Rob Firman, Technical and Specification Manager, Polyfoam XPS explains.
Recycled waste plastic in construction
Hierarchy, prevention to disposal, plastic types and approaches.
UK Net Zero Carbon Buildings Standard V1 published
Free-to-access technical standard to enable robust proof of a decarbonising built environment.
Prostate Cancer Awareness Month
Why talking about prostate cancer matters in construction.
The Architectural Technology podcast: Where it's AT
Catch up for free, subscribe and share with your network.
The Association of Consultant Architects recap
A reintroduction and recap of ACA President; Patrick Inglis' Autumn update.
The Home Energy Model and its wrappers
From SAP to HEM, EPC for MEES and FHS assessment wrappers.
Future Homes Standard Essentials launched
Future Homes Hub launches new campaign to help sector prepare for the implementation of new building standards.
Building Safety recap February, 2026
Our regular run-down of key building safety related events of the month.