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
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.