What elements are included in the calculation of construction costs in RAIC Document 6?

The calculation of construction costs in RAIC Document 6 focuses primarily on project elements, which encompass the various components that contribute to the physical construction of a project. This includes materials, labor, equipment, and site work, among other factors. Understanding that project elements form the basis for cost estimation is vital for architects in budgeting and project management.

In contrast, architectural fees, VAT, and land costs are typically considered separate from the direct construction costs. Architectural fees reflect the services provided by the architect, VAT (Value Added Tax) relates to tax implications, and land costs pertain to the acquisition of property. While these costs are undeniably important in the overall financial framework of a project, they do not fall under the specific calculation of construction costs as outlined in RAIC Document 6. Recognizing this distinction is essential for accurate project financial planning and ensuring that all necessary cost factors are appropriately accounted for in and outside the construction phase.