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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, including assembly, holding and improvement
- Planning and feasibility studies
- Architectural and engineering design
- Construction, including materials, equipment and labour
- Field supervision of construction
- Construction financing
- Insurance and taxes during construction
- Owner's general office overhead
- Equipment and furnishings not included in construction
- Inspection and testing
- Land rent, if applicable
- Operating staff
- Labour and material for maintenance and repairs
- Periodic renovations
- Insurance and taxes
- Financing costs
- Utilities
- Owner's other expenses
- Design development changes,
- Schedule adjustments,
- General administration changes (such as wage rates),
- Differing site conditions for those expected, and
- Third party requirements imposed during construction, such as new permits.
