This method of determining an estimation of probable costs can be used for renovation proj- ects, new freestanding or add-on buildings, and for outpatient facilities. Renovation projects typically reflect higher costs per square foot (needed to determine line item A) than new construc- tion. Outpatient facilities or type B occupancy buildings also have a lower cost per square footage projection because they are not subjected to the same building requirements for fire and safety codes as type I occupancy build- ings. The nurse executive must understand how the building type and construction type (ren- ovation or new) will affect the cost per square footage and, ultimately, the total project cost.