What does the term 'Cost of the Work' refer to?

The term 'Cost of the Work' specifically refers to costs associated with the actual work performed on the construction site. This encompasses all direct expenses necessary for the construction process, including materials, labor, equipment, and any other costs directly related to the construction activities. It's important to distinguish this term from more general terms related to project financing or management, as 'Cost of the Work' focuses specifically on the tangible activities and resources utilized during the construction phase. Understanding this definition is critical for effective budgeting and financial planning in real estate development, as it provides clarity on the expenditures that directly contribute to the physical creation of the project.