ABSTRACT
Building costs are the costs actually incurred by the builder in the course of business i.e. wages, material prices, plant costs, rates, rents, overheads and taxes. AECOM's Building Cost Index measures movement of basic labour and materials costs to the builder. It is a composite index. No allowance has been made for changes in productivity or for rates or hours worked which may occur in particular conditions and localities. Tender prices represent the cost a client must pay for a building. They include building costs but also take into account market considerations, the tendering climate, constructor sentiment and its assessment of prevailing market conditions amongst other things. They therefore include allowances for profits, risks and other on costs such as preliminaries. Tender prices are similar to building costs but also take into account market considerations such as the availability of labour and materials, and the prevailing economic situation.
