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How is Construction Cost defined in a legal contract?

• Construction Cost means the entire expense involved in the execution of a project. This includes supervision, materials, supplies, labor, tools, equipment, transportation, and other facilities provided or utilized. Penalties or other amounts withheld from payment to the contractor are not deducted from this cost. However, this cost does not encompass fees for consulting engineers/architects, or payments made to them. It also does not account for the cost of land or rights-of-way and easement acquisition. Seen in 72 SEC Filings
• Construction Cost means the value (minus taxes) required to complete the construction work. This cost is calculated by the Cost Consultant based on the current market rates and agreed upon by the parties involved. The cost estimate excludes the cost land, development charges, or other costs which are the responsibility of the . Seen in 33 SEC Filings
• Construction Cost means the aggregate cost of the project components specified or designed by a design professional. These include labor, material, and equipment costs and the management or supervision expense provided by a separate construction manager or contractor. It also includes an allowance for overhead and profits of the construction manager or contractor. Seen in 18 SEC Filings
• Construction Cost means the price required to perform all work according to the construction documents. Seen in 17 SEC Filings
• Construction Cost means the total estimated contract award amount, which includes the cost of all built-in fixtures, excluding moveable or personal property or construction cost contingency. Seen in 16 SEC Filings
• Construction Cost means the direct actual cost to the [organization] of all construction contract items for the project, including labor, materials, and equipment needed. It excludes costs of consulting, legal and related services; cost of land and rights-of); the [organization]'s administrative expenses and any other exclusions listed in [appendix]. Seen in 12 SEC Filings
• Construction Cost means the contract prices of all project elements designed or specified by or on behalf of the Prime Consultant, including all applicable taxes. In absence of a contract price for all or part of the project, the cost will be determined by elemental cost analysis using market rates at the estimated time of construction. The construction cost does not include professional fees, or land acquisition costs. Seen in 12 SEC Filings
• Construction Cost means the sum of all the directly incurred and necessary costs, both direct and indirect, for constructing or installing a capital improvement that are capitalized, in accordance with Generally Accepted Accounting Principles (GAAP) Seen in 10 SEC Filings

Note: pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Construction Cost means the total expense for materials, labor, equipment, and services to complete a project, excluding professional fees and land acquisition costs.

Relevant Contract Types

• Construction Contract
• Design-Build Contract
• Engineering, Procurement, and Construction (EPC) Contract
• Joint Venture Agreement

Relevant Circumstances

• When renovating a property
• When constructing a new building or facility
• When bidding for a construction project

Relevant Sectors

• Real Estate
• Infrastructure
• Manufacturing
• Commercial Development

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Genie Definition 2

• Construction Cost means the contract price to complete a project, including applicable taxes, not encompassing cost of land or development charges.

Relevant Contract Types

• Fixed Price Contract
• Cost Plus Contract

Relevant Circumstances

• When negotiating a fixed contract for a construction project
• When adjusting the scope of a construction project

Relevant Sectors

• Architecture and Design
• Engineering
• Public Works

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