Hard costs v soft costs
There are a wide variety of different construction costs that must be built into a project’s budget. Many of these can be divided into two categories; hard costs and soft costs.
Often referred to as 'brick-and-mortar costs', hard costs refer to the cost of physical construction, such as; foundations, superstructure, interior finishes, labourers, equipment, drainage and so on. Hard costs, being 'tangible', tend to be relatively easy to estimate but vary significantly according to the project type. For example, a complex facility such as a hospital will tend to have higher hard costs per square metre than an office building.
Soft costs are those costs that, unlike hard costs, are not instantly visible or tangible, and are not directly related to labour or building materials. This might include:
- Fees.
- Land costs.
- Off-site costs.
- Loans, accounting fees and interests.
- Insurances, permits and taxes.
- Public relations and advertising costs.
Unlike fixed equipment that is classified as a hard cost, moveable furniture and equipment are classified as soft costs. This includes items such as computer equipment, telephone systems, and so on. Costs that can continue post-completion such as maintenance, security and other up-keep-related fees are also deemed to be soft.
[edit] Related articles on Designing Buildings
Featured articles and news
The Health and Safety Executive at 50
And over 200 years of Operational Safety and Health.
Thermal imaging surveys a brief intro
Thermal Imaging of Buildings; a pocket guide BG 72/2017.
Internally insulating a historical building
An experimental DIY approach using mineral thermal lime plaster.
Tree species selection for green infrastructure: A guide for specifiers.
50 million new trees over 25 years.
Art of Building CIOB photographic competition public vote
The last week to vote for a winner until 10 January 2025.
The future of the Grenfell Tower site
Principles, promises, recommendations and a decision expected in February 2025.
20 years of the Chartered Environmentalist
If not now, when?
Journeys in Industrious England
Thomas Baskerville’s expeditions in the 1600s.
Top 25 Building Safety Wiki articles of 2024
Take a look what most people have been reading about.
Life and death at Highgate Cemetery
Balancing burials and tourism.
The 25 most read articles on DB for 2024
Design portion to procurement route and all between.
The act of preservation may sometimes be futile.
Twas the site before Christmas...
A rhyme for the industry and a thankyou to our supporters.
Plumbing and heating systems in schools
New apprentice pay rates coming into effect in the new year
Addressing the impact of recent national minimum wage changes.