Construction Budget

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1 Types

January 1, 1 6 min read Definitions

Cost-Plus-Percentage Contract Construction Agreements Contractor Compensation Project Costs Percentage Profit Incentive Structure Construction Budget

A cost-plus-percentage contract is a construction agreement in which the contractor is compensated with a specified percentage profit over and above the actual construction costs. This type of contract can lead to increased project costs due to the lack of incentive for the contractor to minimize expenses.

January 1, 1 6 min read Definitions

Direct Costs

Direct Costs Real Estate Construction Construction Budget Project Management Cost Estimation Building Materials Labor Costs

Direct costs are expenses that are readily identifiable in the construction of real estate, including labor, materials, and contractor’s overhead and profit. These are contrasted with indirect costs, which include expenses like architect’s fees and interest during construction.