Sure, here are the different ways construction project cost are categorize in the finalization process:
1. Direct costs:
These are the costs that can be directly attribute to the construction of the project, such as the cost of materials, labor, and equipment.
2. Indirect costs:
The costs that are not directly relate to the construction of the project, but are still necessary for its completion, such as the cost of permits, insurance, and project management.
3. Contingency costs:
The costs that are set aside to cover unexpect expenses, such as changes in the scope of work or unforeseen site conditions.
4. Profit:
This is the amount of money that the contractor expects to make on the project.
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The specific categories of costs that are use will vary depending on the type of project and the specific contract between the owner and the contractor.
However, the above categories are the most common.
In the finalization process, the costs are typically summarize in a document call a “cost breakdown structure” (CBS).
The CBS provides a detail breakdown of all the costs associate with the project.
And is use to track the project’s budget and to manage changes to the scope of work.
CBS is typically organize by the different categories of costs, and may also include additional information such as the estimate cost of each item.
The actual cost of each item, and the variance between the estimate and actual cost.
The CBS is a valuable tool for managing construction project costs, and can help to ensure that the project stays on budget and on schedule.
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