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The construction process is the detailed steps required to complete your construction project. This process can be broken down into five phases – planning/design, pre-construction, procurement, construction, and post-construction. Depending on the size and scope of the project, each phase has its own set of challenges.

Most often cost estimating professionals break down the total cost of a project into these three elements: Direct Cost, Indirect Cost, and Markup. The relationship between the two models is Labor & Materials components are considered direct costs, overhead is indirect and profit fits in the markup category.

A Cost Breakdown Structure (CBS) is a breakdown or hierarchical representation of the various costs in a project. The Cost Breakdown Structure represents the costs of the components in the Work Breakdown Structure (WBS).

Finished lot costs 20-25% of the total selling price, with half of that reflecting infrastructure costs, such as utilities and driveway. Building materials, everything from foundation and flooring, to porches and roofs, cost 25-30% of the total. Onsite labor costs 20-25%. General overhead is about 6%.

You can make a cost breakdown structure by estimating how much you think each task in the project management lifecycle will cost to complete. Essentially, if you add on the values for each of those project tasks you'll be able to work out at any level exactly how much the project will cost overall.

There are five main types of construction cost estimates: preliminary, detailed, quantity, bid, and control. Each is used for a different purpose at a different time in a project lifecycle.

The cost breakdown means breaking the costs into various components, such as labor, materials, overhead, and other expenses. This information can then determine where cost savings can be made or compare the costs of different projects.

What Is a Work Breakdown Structure in Construction? A work breakdown structure (WBS) in construction is a hierarchical way of organizing a building project. The WBS is a single document that divides the project deliverables into manageable chunks known as work packages.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Content Takedown Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232