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Last edited 20 Nov 2020
Cost vs price
- 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.
- 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.
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.
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