What Are the Key Components of Construction Costs?
Construction costs can be broadly categorized into several components:
Materials: This includes the cost of raw materials such as concrete, steel, wood, and other building supplies. Labor: Wages paid to skilled and unskilled workers, including contractors and subcontractors. Equipment: Costs associated with renting or purchasing construction machinery and tools. Permits and Licenses: Fees for obtaining necessary permits and licenses to comply with local regulations. Professional Services: Payments for architects, engineers, and other professionals involved in the project. Contingency: An allocation for unforeseen expenses that may arise during the construction process.