ABSTRACT
Predicting and managing the cost of building - that is, establishing and maintaining a project budget - is fundamental to a successful outcome. Unfortunately, budget and cost terminology is often used loosely, and what constitutes "cost" can vary from project to project. Project costs are divided into two major categories - construction cost and owner's costs. On traditional design-bid-build projects, the construction cost is equivalent to the contract sum - the amount paid to the general contractor. Finally, to estimate the total construction cost, a contingency is added to the bid cost to cover unavoidable changes to the work. Theater planners have specific responsibility for operating costs in two areas. A number of additional factors must be considered when comparing and determining costs. The project delivery method can affect both the construction cost and the owner's costs.
