Capital cost is including land, building, fees associated with design, FF&E items and other permanent items used in building.
Financing cost is considering cost effects of alternative funding sources, future flexibility of funds, construction period finance charges, and taxation implication of the options.
Operation cost includes estimates of rent, energy costs, cleaning costs, building related staffing costs and other staffing costs.
Annual maintenance cost is described as cost of maintenance after completion of the project due to tear & wear concept. Normally these details can be obtained from the manufactures or maintenance managers.
Replacements and alterations cost is occurred mainly because of end of material life. So in seeking a realistic assessment of the life of a materials and components, reference should be made to manufactures, maintenance managers and other sources of such data.
Occupancy cost is the cost of performing the function for which the building is intended. Occupancy costs are distinguished from operation costs, as they relate to costs attributable to a specific process undertaken by the client, which may change within the life of the building
Residual values and disposal cost, estimate of the resale value and the cost of disposing of the building, plant, land and other assets after the expiry of the life cycle.
(RICS Books, 2003)
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