As one builds higher, building costs_, while warehousing equipment costs tend to _.

4. decrease; increase

the answer is option 4

4. decrease; increase is the likely answer.

i will go with option " 4 "        .

Hello Team,

What determines how much buildings cost? We all understand the cost of buying a suit, an automobile, or even a house. By experience, we develop a sense for what something should cost. However, unless we fabricate an item from its basic parts, we may not develop a sense of what makes it cost a specific amount. Construction projects are complicated entities. To be able to estimate and manage building cost, an architect must first understand what costs are involved. Capital Cost Components Capital costs are normally subdivided into three major categories—site costs, hard costs, and soft costs. The accompanying diagram summarizes each of these categories.

Site Costs Site costs normally cover the owner’s initial land acquisition and development costs for the project. Soft Costs Soft costs include a variety of costs incurred by the owner to move the project forward. Design fees, management fees, legal fees, taxes, insurance, owner’s administration costs, and a variety of financing costs fall into this category. Moving costs and other tenant-related costs may be placed in the soft cost category.

Hard Costs Hard costs are those most directly affected by decisions of the architect. These include core and shell features, interior enclosures, basic building services, and fit-out costs for finishes and mechanical and electrical services. Major components of hard costs that are usually not incurred under the construction contract include furniture, fixtures, and equipment (FF&E) and specialized mechanical and electrical services. These costs are often incurred directly by the owner.

The breakdown of costs can vary widely according to building type. For instance, a standard office building is typically built for between $80 per square foot and $150 per square foot, depending on quality and performance requirements. A laboratory building, on the other hand, may cost from $150 per square foot to more than $400 per square foot, again depending on quality and performance requirements. The disparity between costs for these two building types is caused largely by laboratory mechanical costs, which alone can exceed $150 per square foot, especially when extreme requirements of control, filtration, and cleanliness are required. To control mechanical costs when they are expected to represent 40 to 50 percent of overall project cost, more attention must be given to initial budgeting and ongoing cost management activities for mechanical elements.

Construction Costs Construction costs are the portion of hard costs normally associated with the construction contract, including the cost of materials and the labor and equipment costs necessary to put those materials in place. Added to this are overhead costs, which include both job site management and the contractor’s standard cost of doing business (office, staff, insurance, etc.).

Material Costs Material costs cover purchase of materials, including local and regional taxes, and shipping and handling costs, which include transportation, warehousing, and in some cases security. In very remote areas or in overseas locations, shipping, handling and other overheads may exceed the cost of the material. Installation Costs Installation costs include the price of labor and equipment to put materials in place.

 Labor costs consists of base wages, taxes, insurance, and benefits, as well as premiums for overtime or for working in remote locations. Equipment costs include the direct cost of the equipment (whether it is a purchase amortization or a rental) and the cost of an equipment operator, which sometimes includes support staff.

Overhead costs associated with construction are usually referred to as general conditions. These costs include those for field supervisory staff, additional professional services staff, engineering consultants, as well as temporary facilities and utilities, small tools, and a variety of safety and security equipment. Also included in this category are bonds, permits, and insurance costs allocated to the project.

Contractors and subcontractors also incur general conditions costs. Additional overhead costs associated with the main office of each contractor include salaries of home office staff, certain insurance costs, various home office overhead costs (job procurement, marketing, advertising, etc.) and profit. Profit is a function of market and risk and may include a contingency for unknown or uncontrollable aspects of the work.

Regards,

Saiyid

decrease; increase...........................

increase; decrease______________________-A

I too agree with decrease, increase

decrease; increase=======================

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