Cost is a very important factor when it comes to construction. Whenever a construction project is planned, the first thing that is done is the estimation of the cost. Even when the customers get the pre-purchase building inspection in the Gold Coast, it is the cost that is the most vital factor. Several costs are incurred in a construction project. These costs can be divided into fixed, variable and semi-variable. Here is a lost of factors that have a significant impact on the project cost:

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  Construction Material Costs

The project cost consists of the cost of material, shipping charges and taxes applicable. Therefore, it is important to consider all these factors while calculating the overall cost of construction material.

• Labor Wages

The rates of labor wages depend on the geographical location of the site.So, it is advisable to consider the local wage rate. In case, the project has to be started after a  couple of months of project cost estimation, a considerable variation in wage rates should be considered.

• Condition Of The Site

The condition of the project site largely affects the construction cost. The poor condition of the soil, contaminated materials, buried pipes and cables, river or stream crossings, heavy traffic, environmentally sensitive area, archaeological sites, etc. can increase the project cost. So, it is important to consider these variations during estimation.

• Project Time

Another significant factor to consider is the schedule of construction projects.A delay in the scheduled time of the project can increase the making cost. This may be due to an increase in indirect costs with time. Also, the cost of materials, tools, labors, types of equipment, etc may vary with time due to inflation factor.

• Planning And Specifications

This is an important step in the entire construction process. Good quality plan and specifications, if executed properly can reduce the construction time without delay.

• Regulation Policies

It is necessary to get approvals from regulatory agencies and abide by the law. These regulatory requirements can sometimes be costly. Therefore, such costs also need to be considered during project cost estimation.

• Insurance Requirements

General insurance requirements such as performance, payment bonds, and contractors should be considered. Also, consider the insurance cost of various tools, types of equipment, construction workers, etc while calculation the cost estimation.

• Location Of Construction

Considering the location of the construction site becomes important in case the project is far away from available resources. In such a scenario, the cost of transportation, types of equipment, materials, and tools increases with distance and thereafter, increases the project cost.

• Nature Of The Project

If the project size is large, there may be a requirement of workers. Therefore, there may need to hire a workforce from different regions. At times, there may also be a requirement for specialized workers. In these cases, the extra cost may be incurred and added to the total project cost.

• Technical Review Of The Site

A technical engineer should be hired to review the construction project to ensure that the project meets all its requirements with optimum operational and maintenance costs.