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
Download your free guide.
Four new types of prior approval for solar developments
Online Planning Portal application types from 5 September.
Election fails to spark construction industry revival
Contract awards and planning; post election.
Making diversity and inclusion easy for SMEs
The CIOB tool for companies with limited resources.
Sustainable Futures: Redefining Retrofit for Net Zero Living
BSRIA Briefing 2024, initial speakers announced.
Looking back at the UK's first Passivhaus leisure centre
Reflections on St Sidwell’s Point with CIAT.
A-Level results and electrical apprenticeships
Electrical Skills Index highlights areas with skills shortages.
One of the world's more unusual drive-throughs.
A quick introduction.
Hadrian's Wall Path and the national trails
The trails are heritage assets in their own right.
Articles on timely advice and hydraulic lime.
Building Designers Association of Australia
CIAT and BDAA sign Memorandum of Understanding.
Built Environment Inclusive partners issue statement committed to inclusion.
Building regulation requirements can have unintended consequences.
CIOB announces 2024/25 vice president
Sustainability champion Professor Saul Humphrey.
Accelerating towards a net-zero built environment.
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.