What is a Construction Costs?
The cost to build structures, facilities, and improvements on a property, including materials, labor, and contractor fees, but excluding land, infrastructure, and soft costs.
Understanding Construction Costs
Construction costs typically include:
**Building Construction:**
- Glamping units (tents, cabins, structures)
- RV pads and site improvements
- Restroom and shower facilities
- Office and administrative buildings
- Clubhouses and common buildings
- Maintenance buildings and storage
**Site Improvements:**
- Paving and hardscaping
- Landscaping and site amenities
- Fencing and gates
- Signage and wayfinding
- Outdoor structures (decks, patios, gazebos)
**Interior Finishes:**
- Flooring, walls, ceilings
- Plumbing fixtures
- Electrical fixtures and lighting
- HVAC systems
- Interior doors and hardware
**Specialty Construction:**
- Pools and hot tubs
- Playgrounds and recreational facilities
- Fire pits and outdoor kitchens
- Trails and pathways
- Specialized structures (treehouses, domes)
Construction costs are influenced by:
**Materials:**
- Quality and grade of materials
- Local material availability and costs
- Specialty or custom materials
- Material price fluctuations
**Labor:**
- Local labor rates
- Skilled labor availability
- Project complexity and timeline
- Union vs. non-union labor
**Location:**
- Regional cost variations
- Remote or difficult access sites
- Local building codes and requirements
- Weather and seasonal factors
**Quality and Positioning:**
- Budget vs. luxury construction
- Standard vs. custom designs
- Premium finishes and features
- Brand positioning requirements
**Project Factors:**
- Project size and scale
- Site conditions and access
- Construction timeline and scheduling
- Contractor selection and competition
Construction cost ranges for outdoor hospitality:
**Glamping Units:**
- Basic tent platforms: $5K-$15K per unit
- Standard cabins: $25K-$60K per unit
- Luxury structures: $60K-$150K+ per unit
**RV Sites:**
- Basic pad and hookups: $3K-$8K per site
- Premium sites with amenities: $8K-$15K per site
- Luxury sites: $15K-$25K+ per site
**Facilities:**
- Restroom buildings: $50K-$150K+
- Clubhouses: $100K-$500K+
- Office buildings: $40K-$150K+
Construction costs typically represent 25-40% of total development costs, with the remainder going to land, site development, infrastructure, permits, soft costs, and FF&E.
Construction cost management is critical because:
- Represents significant portion of total investment
- Cost overruns can impact project viability
- Quality affects property positioning and rates
- Construction delays affect revenue timelines
Sage Outdoor Advisory includes construction cost analysis in our feasibility studies, helping clients understand construction requirements, estimate costs, evaluate quality vs. cost trade-offs, plan for contingencies, and assess how construction costs affect overall project economics and returns.
Examples of Construction Costs
- •A glamping resort construction: 25 units at $45K each = $1.125M, restroom facility ($85K), office ($55K), clubhouse ($180K), site improvements ($120K), landscaping ($95K). Total construction costs: $1.66M. This represents 52% of total $3.2M development costs. The feasibility study evaluates whether construction quality supports target rates and positioning.
- •An RV park construction: 80 sites at $6.5K per site = $520K, restroom building ($95K), office ($42K), maintenance building ($35K), site improvements ($85K). Total construction: $777K, representing 35% of $2.2M total development costs. The analysis shows construction costs are reasonable for the market and support competitive positioning.
- •A luxury glamping resort invests in premium construction: 15 units at $95K each = $1.425M, luxury clubhouse ($380K), premium facilities ($220K), high-end site improvements ($180K). Total construction: $2.205M, representing 58% of $3.8M development costs. The premium construction enables $400/night rates versus $200/night with standard construction, justifying the higher investment.
Common Use Cases
- •Budgeting and cost planning for development projects
- •Evaluating quality vs. cost trade-offs
- •Assessing construction feasibility and timelines
- •Understanding cost drivers and optimization opportunities
Related Services
Frequently Asked Questions About Construction Costs
What are construction costs and how do they differ from development costs?
Construction costs are the expenses to build structures and improvements (units, facilities, sites), typically representing 25-40% of total development costs. Development costs include construction plus land, site development, infrastructure, permits, soft costs, and FF&E. Construction costs are the 'hard costs' of actual building, while development costs encompass the entire project investment.
How much do construction costs vary?
Construction costs vary significantly: glamping units may cost $5K-$150K+ each, RV sites $3K-$25K+ each, facilities $40K-$500K+. Factors affecting costs include quality level, location, materials, labor rates, project complexity, and site conditions. A feasibility study should provide detailed construction cost estimates for your specific project.
What affects construction costs?
Construction costs are affected by materials (quality, availability, prices), labor (rates, availability, skills), location (regional costs, access, codes), quality level (budget vs. luxury), and project factors (size, complexity, timeline). Remote locations, difficult access, and premium quality all increase construction costs.
How can I control construction costs?
Construction cost control involves: detailed planning and specifications, competitive bidding from multiple contractors, value engineering (optimizing design for cost), phasing construction to manage cash flow, and including contingency reserves (10-20%) for unexpected costs. A feasibility study should help identify cost optimization opportunities while maintaining quality standards.
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