Sunk cost in buildings
NRM3: Order of cost estimating and cost planning for building maintenance works, defines ‘sunk cost’ as:
‘… the cost of goods and services already incurred and/or irrevocably committed.’
As sunk costs have already happened, they are independent of any event that may occur in the future.
Sunk costs are often associated with buildings, as for many businesses, once built, they are in effect sunk costs.
Sunk costs can pose an important dilemma for the funders of building projects, if for example, circumstances change part way through a project. They may then need to weigh up how much they have already spent, against the potential consequences of either proceeding (and potentially throwing good money after bad) or cutting their losses and moving on.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
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.
Planning reform: draft NPPF and industry responses.
Last chance to comment on proposed changes to the NPPF.
A Regency palace of colour and sensation. Book review.