A project cost breakdown is a detailed summary of all expenses associated with a construction project, categorized by cost type. It helps owners and contractors monitor spending and ensure financial transparency.
Why a Cost Breakdown is Important
By organizing costs into specific categories, a project cost breakdown improves budgeting accuracy and helps identify potential savings.
Common Cost Breakdown Categories
- Labor costs, including wages, payroll taxes, and benefits
- Material costs for concrete, steel, and other building supplies
- Equipment costs such as rentals and maintenance
Related Terms: Cost Breakdown Structure (CBS) (CBS), Job Costing, Earned Value Analysis, Budget Variance
FAQs
How is a project cost breakdown different from a budget?
A: A budget is an estimate, while a cost breakdown details actual and allocated expenses.
Why is tracking cost breakdowns important?
A: It helps prevent overruns and ensures financial accountability.