Cost refers to the construction price of a project, and refers to the sum of all expected or actual costs required to complete the construction of a project. From the owner's (investor's) point of view, the project cost refers to the construction cost of the project, that is, all the fixed assets investment expenses expected or actually paid for the construction of a project.

These expenses mainly include the purchase of equipment and tools, construction and installation costs, other construction costs, reserve funds, interest during the construction period, and adjustment tax on the investment direction of fixed assets (this fee is not charged for the time being).

Although these expenses do not all form the value of new fixed assets when calculating the value of new assets according to the new financial system and enterprise accounting standards in the final accounts of construction projects, they are necessary to complete the construction of fixed assets.

In this sense, the project cost is the fixed assets investment of the construction project. From the contracting point of view, the project cost refers to the project price, that is, the estimated or actual price of the construction and installation project in the land, equipment, technical services, contracting and other markets and the total construction price.

Any project has a specific purpose, function and scale. Therefore, the structure, modeling, space division, equipment configuration and interior and exterior decoration of each project have specific requirements, so the content and physical form of the project are individual and different. The difference of products determines the individual difference of project cost.