Construction Project Costs The principal components of a contractor’s costs and expenses result from the use of labors, materials, equipment, and subcontractors. Additional general overhead cost components include taxes, premiums on bonds and insurance, and interest on loans. The sum of a project’s direct costs and its allocated indirect costs is termed the project cost.(…)
Cost estimation of construction projects is a very complex process containing many variable factors. Cost estimation requires proper study, training and experience.
The costs of a constructed facility to the owner include both the initial capital cost and the subsequent operation and maintenance costs. Each of these major cost categories consists of a number of cost components. The capital cost for a construction project includes the expenses related to the inital establishment of the facility: Land acquisition,(…)
THE TIME VALUE OF MONEY The time value of money is a relationship between the value of money today and its value at some future date, considering the interest charged or paid for the use of money. When an asset is purchased with the provision that the cost of asset will be liquidated over several(…)
During the concrete construction stage, actual work is executed as per the plans and specifications prepared earlier. The construction methodology is carried out in a planned manner preventing wastage of manpower, materials and money and ensuring completion of the project within the stipulated time, cost and quality. The various activities of this stage can be(…)