What do overall costs or 'total costs' encompass?

Total costs, often referred to as overall costs, are comprehensive in nature and encompass both first costs and ongoing operating costs associated with a project. First costs include initial capital expenses that are incurred during the design and construction phases, such as materials, labor, and equipment. These costs are essential to get the project off the ground.

On the other hand, ongoing operating costs cover expenses that arise after construction, such as utilities, maintenance, repairs, and property management fees. Together, these two categories provide a complete picture of the financial investment needed for a built project throughout its life cycle. This holistic approach is critical for architects and clients in understanding the full financial implications of a project beyond just the initial investment.

Other options focus too narrowly on specific cost elements. For instance, one option mentions only initial capital costs, failing to account for the significant ongoing costs that accumulate over time. Another alternative emphasizes construction and maintenance costs in isolation, which does not include operational expenses. The choice that speaks only to land purchases overlooks the various essential elements that constitute total costs. Thus, the correct understanding of total costs is encapsulated well by the combination of first costs and ongoing operating costs.