Total cost
The term ‘cost’ in the construction industry generally refers to the amount that has to (or will have to) be paid to receive goods or services.
The total costs associated with a development may consist of a number of components.
Total costs will include construction costs, that is, those costs incurred by the actual construction works themselves, on some projects determined by the value of the contract with the main contractor. However, the construction contract may include costs that might not in themselves be considered literal construction costs (hard costs), such as fees, profits, overheads, and so on, and there may be construction works that are awarded by the client outside of the main contract (such as fitting out the interior, minor alterations to the completed works, installation of equipment, and so on).
In addition, there will be other costs associated with a development, such as land acquisition costs, fees for letting agents, marketing costs and contributions associated with planning permissions.
These are generally considered to be capital costs. However, beyond the completion of the construction contract, there will be other costs associated with operating the development which may not be capital costs, and ultimately, there will be costs associated with the demolition, deconstruction or disposal of the development.
Cost may also have wider interpretations, such as the environmental cost or the social cost of a particular purchase or action.
NB The Chartered Institute of Procurement & Supply (CIPS) Glossary of procurement terms, defines total costs as: ‘The total amount of costs spent, including fixed, variable, direct and indirect costs’
[edit] Related articles on Designing Buildings Wiki
- Accounting.
- Bill of quantities.
- Budget.
- Business plan.
- Capital cost.
- Cost certainty.
- Cost consultant.
- Cost control.
- Cost information.
- Cost plans.
- Cost.
- Cost.
- Front-loaded costs.
- Hard costs v soft costs.
- Life cycle costs.
- Operational costs.
- Outturn cost.
- Sunk cost.
- Total development cost.
- Utilising life cycle costing and life cycle assessment.
- Whole life costs.
Featured articles and news
RTPI leader to become new CIOB Chief Executive Officer
Dr Victoria Hills MRTPI, FICE to take over after Caroline Gumble’s departure.
Social and affordable housing, a long term plan for delivery
The “Delivering a Decade of Renewal for Social and Affordable Housing” strategy sets out future path.
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
The proposed publicly owned and backed subsidiary of Homes England, to facilitate new homes.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).