Enter the total direct costs of compliance ($) and the loss of revenue due to compliance ($) into the Calculator. The calculator will evaluate the Building Regulations Cost.
Building Regulations Cost Formula
RG = DCC + LR
Variables:
- RG is the Building Regulations Cost ($)
- DCC is the total direct costs of compliance ($)
- LR is the loss of revenue due to compliance ($)
To calculate Building Regulations Costs, add the total direct costs of compliance to the total revenue loss from compliance.
How to Calculate Building Regulations Cost?
The following steps outline how to calculate the Building Regulations Cost.
- First, determine the total direct costs of compliance ($).
- Next, determine the loss of revenue due to compliance ($).
- Next, gather the formula from above = RG = DCC + LR.
- Finally, calculate the Building Regulations Cost.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
total direct costs of compliance ($) = 5000
loss of revenue due to compliance ($) = 2000
FAQs about Building Regulations Cost
What are direct costs of compliance?
Direct costs of compliance refer to the specific, identifiable expenses directly associated with meeting the requirements of building regulations. This can include costs for materials, labor, and any other expenses directly incurred as a result of compliance efforts.
How can loss of revenue occur due to compliance?
Loss of revenue due to compliance can occur in several ways, such as temporary closure of business operations for renovations, reduced operational hours, or decreased customer capacity. These changes, while necessary for compliance, can negatively impact the income generated during the compliance period.
Why is it important to calculate Building Regulations Cost?
Calculating Building Regulations Cost is crucial for planning and budgeting purposes. It helps businesses and individuals understand the financial impact of compliance, enabling them to allocate resources efficiently and make informed decisions about their projects.
Can indirect costs be included in the Building Regulations Cost calculation?
While the formula provided focuses on direct costs and loss of revenue, indirect costs such as increased insurance premiums, financing costs, or administrative expenses related to compliance can also significantly impact the overall cost of building regulations. However, these are typically calculated separately to provide a clear distinction between direct and indirect expenses.
