Build Your Future: Ace the Construction Management Exam 2025 with Confidence!

The actual cost of construction is typically determined during the procurement stage of a project. This phase involves the activities related to purchasing or acquiring the necessary materials, equipment, and services required for the project. During procurement, contractors and suppliers submit bids, and the project team assesses these proposals based on cost, quality, and schedule considerations. This process ultimately leads to the selection of contractors and subcontractors, at which point the actual costs become clearer based on the agreed-upon prices for materials and labor.

In contrast, feasibility analysis primarily focuses on assessing whether a project is viable from a financial, technical, and operational perspective, without establishing exact construction costs. The design phase, while it may provide estimates based on detailed drawings and specifications, does not finalize the costs until procurement is completed. The construction stage is when the project is executed, but the costs are already determined during procurement based on contractual agreements and negotiations that have taken place beforehand.