What is Construction Cost in Japan?

Construction Cost

In Japan, the term construction cost does not have a clear definition. The meaning of construction cost can be broadly classified into three categories: price, cost, and price/cost level.

When referring to price, construction cost generally means the contract price agreed between the client and the contractor (builder) for a specific construction project, and is sometimes referred to as the construction cost or construction price.

The term construction cost in the context of cost generally refers to the construction cost of a contractor (builder) for a specific construction project.

When referring to level, construction cost generally refers to the level of prices and costs in a specific construction market. In some cases, it is expressed as an amount based on assumptions such as region and building use, and in other cases, it is expressed as an index called the construction cost index (construction price index/construction cost index).

While construction cost is a general term that refers to the amount of money spent on various types of construction work, such as building work, facility work, civil engineering work, and various detailed work, building cost is often used for buildings based on specific conditions.