19/05/2021
Continuation
1. The cost of a structure
๐๏ธ๐๏ธ๐๏ธ๐๏ธ๐๏ธ๐๏ธ๐๏ธ๐๏ธ๐๏ธ๐๏ธ๐๏ธ๐๏ธ
The cost of a building is the sum of its material, equipment, labour and financial costs. Material costs include the actual cost of matter and all its handling up to site and before site labour can process and assemble it on the building. Equipment cost includes all costs of hiring and buying machines, tools and other instruments necessary for the labour to prepare the site and assemble building components/materials. Labour costs includes the cost of consultants, surveyors, project managers and site workers that are directly involved in design, setting out and construction works. Financial cost includes the direct cost of money (assume itโs a loan) and the loss in revenue due to delays in completion of a project. In Uganda, labour tends to be the least cost in all forms of construction. It is the material, equipment and financial costs that dominate the overall cost of a building. In Uganda, concrete is cheaper and has a low demand of equipment compared to steel. However, because it takes a lot of time to complete a concrete structure, concrete has a higher financial cost if the developer has used borrowed money or is exposed to alternative projects that need the same money. Still, the benefits on material and equipment tend to cancel the financial cost on must construction projects in Uganda.