Construction costs help to identify the total project cost at the stage of planning and designing. While actual cost of a construction project can be different from the initial budget and estimation, when you have an idea of the cost involve for a project, it will serve as a guidance to prepare the preliminary cost estimates and budgets.When you participate in competitive bidding,it is also necessary to prepare an accurate cost estimation for the project in order to submit a realistic bid.
What are the construction costs?
Construction costs are the total monies spent for building materials and labor. Total construction cost is divided into separate funds appropriated to costs for development plans, building materials, construction crew payment, and miscellaneous fees.
Development plans and drawings
Development plans serve as a guide for construction. Its construction costs are paid by those who want to build a building or invest in a construction project that is unique from the others around it. These development plans will show some interests of the owner.
These construction costs are paid for the architectural and engineering services or companies who design the plans.Check these 4 stages of construction project design for more details on design phase.
If it is a house construction, you can choose to hire an architect, you can work with him or her to make sure your ideas are accurately represented in the drawing. After the drawing is complete, you may need to have it approved by your local zoning office and if necessary, go back to your architect to make the required adjustments.
However, in large scale construction projects, all these design tasks are assigned to a design firm making sure that they will handle all the necessary submissions for approval of authorities. All these costs are included in their consultancy fee for producing the drawings and plans for the construction project.
Cost of Materials
Building materials or construction materials go into the makeup of the project and are estimated before the actual construction begins. Building materials vary in their quality, price and construction costs associated with manipulating the materials.
In large scale projects, the Employer can select the kind of materials for the project comparing the quality of the different brands of materials. It is also important to compare the prices of the different brands of materials. However, a Quantity Surveyor or Contract Administration team will help the Employer to make better selections based on experience, saving construction costs in the long run.
Costs of Construction crew
Costs for construction crew include the payment for the labor required to deliver the project according to the initial plans. Nowadays, instead of hiring labour directly for construction projects, most companies like to hire a contractor and assign all the labour tasks for his company.
Additional construction costs
Other than the above, you also need to consider the additional costs for the project. These Additional construction costs that do not involve the materials or labor of the job include costs associated with building permits, insurance fees, building inspectors, and legal fees that may arise from disputes.
Also there will be a cost for professional fees. If it is a large scale project, it is necessary to establish an office for the project which will add overhead costs for the development.
When you know these costs involve in any construction project, it is easy to prepare the construction project estimate. This estimate will help you to bid for tenders or plan your project budget.