What is included in the cost estimation for a construction project?

In the cost estimation for a construction project, obtaining the required permits is a crucial aspect. This step involves identifying and budgeting for the necessary permits and licenses that must be acquired before construction can legally commence. These permits ensure that the project adheres to local regulations, codes, and safety standards, which can impact both the timeline and the overall cost of the project.

Proper estimation of permitting costs is essential as it helps avoid delays and additional fees during the project. Failing to account for these requirements can lead to significant financial and scheduling issues, jeopardizing the entire project.

Meanwhile, while land acquisition costs, marketing expenses, and labor union fees may relate to different aspects of a construction project or its underlying business considerations, they are not primary components of the cost estimation process focused on construction activities themselves. Each of these can have their own relevance, but obtaining the required permits directly links to the regulatory and operational framework of executing a construction project.