Determining the Construction Cost
The construction cost is based on the projected gross square feet planned for a project and is determined by the sum of the following line items: (1) building cost, (2) site development costs, (3) fixed equipment costs, and (4) construction contingency reserves. Each of these costs and reserve are discussed in more detail to enhance the nurse executive’s knowledge of the terms.
Building Cost
The building cost, represented as line item A in Figure 1, includes all costs associated with the construction of the hospital within 5 ft of the structure itself and all items required by regulated building codes. The actual building materials such as steel structural beams, doors, stairs, interior walls, ceilings and flooring, glazing, exterior cladding, and other building supplies are determined by the project planning teams under the direction of the architect and contractor. Different building materials, specific design features, and the total projected gross square footage directly affect the building cost. Other items included in the building cost include fire alarm and management systems and other items normally found in public and/or healthcare buildings such as drinking fountains and public telephones.