Скачать или смотреть L7 NVQ Dip in Construction Senior Mgmt - COST ELEMENTS

In construction management, cost elements refer to the different parts or categories that make up the total cost of a project.

They help to break down and understand where money is being spent.


Cost elements are the individual components or groups of expenses that together form the total project cost. They show how the budget is divided and help in cost planning, control, and reporting.

Main types of cost elements:

Labour costs – money spent on workers, engineers, supervisors, etc.

Material costs – cost of construction materials like cement, steel, timber, etc.

Plant and equipment costs – costs for machinery, tools, and equipment used on site.

Subcontractor costs – payments made to specialist subcontractors.

Overheads – general running costs such as site offices, utilities, and insurance.

Profit and risk allowances – contractor’s expected profit and funds set aside for unexpected events.

Example:

If a building project costs ₦100 million, the cost elements might be:

Labour: ₦30 million

Materials: ₦40 million

Equipment: ₦10 million

Overheads: ₦15 million

Profit and risk: ₦5 million


Cost elements are the building blocks of a project’s total cost, helping project managers track, control, and manage financial performance effectively.