Factors affecting project cost are discussed in this article. If you go through this article, you will be able to understand the impact of each factor and the degree of impact on the project cost.
Material Cost
Many factors can impact the cost of a construction project, and one of them is the materials used. Some materials, like concrete and steel, are very expensive, while others, like wood, are relatively affordable. The type of materials used can have a significant impact on the overall cost of a project. For example, a concrete foundation will be much more expensive than a wooden one. Similarly, steel framing will be more expensive than wood framing. When it comes to finishes, materials like tile and stone can be quite costly, while carpet and paint are relatively affordable. The cost of materials is just one factor to consider when planning a construction project, but it is an important one.
Impact of Labour Wage on Project Cost
The impact of labor wages on project cost is an important consideration for any business or organization. labor costs can have a significant impact on the overall cost of a project, and this needs to be taken into account when budgeting for a project. Several factors can impact the cost of labor, including the type of work being done, the skills required, and the location of the work. In some cases, it may be possible to negotiate lower labor costs by hiring workers from lower-wage countries. However, this option is not always available, and it is important to consider the potential impact of labor costs on the overall cost of the project before making any decisions.
Impact of Method of Construction on Project Cost
Several factors can impact the cost of a construction project, and one of those is the method of construction. The method of construction is how the project is built, and it can have a significant impact on the overall cost. For example, traditional methods of construction tend to be more expensive than newer methods such as modular construction. This is because traditional methods often require more materials and labor, and they are often slower and more complicated. Modular construction, on the other hand, is typically faster and more efficient, and it often uses less material. As a result, it can be a more cost-effective option for construction projects. Other factors that can impact the cost of a construction project include the size and scope of the project, the location, and the type of materials used.
Impact of Variation Orders on Construction Project Cost
Construction projects are often subject to change orders, which are changes to the scope of work that are requested by the client after construction has already begun. These changes can be minor, such as adding an extra light fixture to a room, or major, such as adding a floor to a building. Change orders can have a significant impact on the cost of a construction project. In some cases, they can increase the cost by 10% or more. In other cases, they can decrease the cost, if the change is something that can be easily implemented without disrupting the construction schedule. Change orders can also impact the construction schedule, often delaying the project by weeks or even months. It is important for construction managers to be aware of the potential impact of change orders on the cost and schedule of their projects, and to factor that into their planning.
Impact of Delay on Cost Overrun in Construction Projects
Construction projects are often delayed due to a variety of factors, including bad weather, material shortages, and problems with the construction crew. While delays can be frustrating, they can also have a significant impact on the overall cost of the project. Cost overruns are common in construction, and they are often the result of delays. When a project is delayed, the contractor may need to pay overtime to the construction crew, and they may also need to pay for storage fees if the project site is not ready to receive materials. In addition, delays can lead to cost overruns by causing the contractor to miss their deadline for completing the project. This can result in a penalty from the client, which can add to the overall cost of the project. As you can see, delays can have a major impact on the cost of a construction project. If you are planning a construction project, it is important to factor in the potential for delays and cost overruns.
Impact of Differing Site Conditions on Construction Project Cost
Several factors can impact the cost of a construction project, and one of the most important is the site conditions. Differing site conditions can refer to anything from the presence of underground utilities to the soil conditions. If the site conditions are different than what was expected, it can impact the project schedule and budget. For example, if the soil is not as stable as expected, it could impact the foundation design and require additional work. Similarly, if there are more underground utilities than expected, it could impact the excavation work. Differing site conditions can also impact the project scope, as additional work may need to be done to account for the changed conditions. As such, it is important to consider the potential impact of differing site conditions when estimating the cost of a construction project.
Nature of Structure
The type of structure and its structural form significantly influence the project cost. Simpler the structure, the lesser the cost. For example, if we have a simple grid, the structural design will be simple. Accordingly, the cost would be lesser comparatively.
In addition, there are different types of structures and this change significantly affect the cost of construction. For example, the cost of a building built with a reinforced concrete frame structure filled with brick walls is not the same as a building build with reinforced concrete walls along.
Project Time
As we all know, time is money. In simple terms, the time to complete the project significantly influences the project cost. When we consider a single day, the cost of labor, machine cost, staff cost, etc. will be added to the project.
Therefore, a single day of a project is important. Thus, project time or the date of completion of a project needs to finalize with much assessment.
Function of Structure
The function of the structure is also a factor affecting the structural design. When we have a structure loaded with a higher load, the structural cost will be increased.
Depending on the use or the function of the structure, the loads on the structure will be changing. Accordingly, it will affect the project cost.
Unforeseen Conditions
Unforeseen conditions are common in foundation construction. If we don’t have adequate geotechnical data or correct data, we will be in trouble.
If the client will be failed to do that contractor will be entitled to a claim. It could lead to an increase in the project cost. Further, this shall not be a failure of the contractor too.
With this final factor, we conclude article on factors affecting project cost.