Types of costs for buildings
Contents |
[edit] Introduction
The idea of ‘cost’ in relation to buildings is not a simple one, as there are a wide range of different types of cost. This article provides a brief summary of those types, with links to sources of additional information.
[edit] Capital cost
Capital costs are those costs associated with one-off expenditure on the acquisition, construction or enhancement of significant fixed assets including land, buildings and equipment that will be of use or benefit for more than one financial year.
[edit] Construction costs
Construction costs are those costs incurred by the actual construction works themselves, and on some projects may be determined by the value of the contract with the main contractor.
For more information see: Capital costs.
[edit] Building operating costs
Building operating costs are the costs incurred gy the day-to-day operation of the building, which might include; utilities costs, maintenance and repairs, general and administrative expenses and so on.
[edit] Business operating costs
Business operating costs may include building operating costs and also other operating costs such as; rent, wages and so on.
[edit] Life cycle costs
Life cycle costing is an economic assessment of the discounted net present value of life cycle costs, carried out using profiles of current and future costs and benefits. There is increasing emphasis on life cycle costing to ensure all costs are taken into account during the decision-making process, not just those for capital investment.
For more information see: Life cycle costing.
[edit] Whole life costs
Whole life cost. Whole-life costs consider all costs associated with the life of a building, from inception to construction, occupation and operation and disposal.
For more information see: Whole life costs.
[edit] Out-turn costs
Generally this refers to the actual, total construction cost calculated at the end of the project, but it may also refer to the cost of a specific contract, or to costs incurred over a defined period. This contrasts with cost estimates, or target costs, which are calculations of the cost that is expected, or the cost that should be achieved.
For more information see: Out-turn cost.
[edit] Other types of costs
Other types of cost might include:
- Abnormal cost.
- Base cost.
- Baseline costs.
- Cost in use.
- Defined cost.
- Direct cost.
- Disallowed cost.
- Environmental cost.
- Outturn cost.
- Prime cost.
- Project cost.
- Provisional cost.
- Real cost.
- Replacement cost.
- Relevant cost.
- Renewal cost.
- Social cost.
- Sunk cost.
- Target cost.
- Tender cost.
- Total cost.
[edit] Related articles on Designing Buildings
Featured articles and news
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.
70+ experts appointed to public sector fire safety framework
The Fire Safety (FS2) Framework from LHC Procurement.
Project and programme management codes of practice
CIOB publications for built environment professionals.
The ECA Industry Awards 2024 now open !
Recognising the best in the electrotechnical industry.
Sustainable development concepts decade by decade.
The regenerative structural engineer
A call for design that will repair the natural world.
Buildings that mimic the restorative aspects found in nature.
CIAT publishes Principal Designer Competency Framework
For those considering applying for registration as a PD.
BSRIA Building Reg's guidance: The second staircase
An overview focusing on aspects which most affect the building services industry.
Design codes and pattern books
Harmonious proportions and golden sections.
Introducing or next Guest Editor Arun Baybars
Practising architect and design panel review member.
Quick summary by size, shape, test, material, use or bonding..
Comments
[edit] To make a comment about this article, or to suggest changes, click 'Add a comment' above. Separate your comments from any existing comments by inserting a horizontal line.