ABSTRACT
Construction costs in the context that follows is a broad term and can be interpreted to mean costs of any sort to anyone associated with construction works. Contractor’s costs, however, literally mean the contractor’s expenditure on labour, materials and plant and include all the items shown in Figure 4.1, with the exception of profit. The inclusion of profit, which is influenced by many considerations, not least of which are market conditions, converts contractor’s costs to contractor’s prices. This coincides with client’s costs. Generally speaking, it should be obvious from the context in which these terms are used what their meaning is intended to be (see Chapter 1).
