Project Cost

Project costs vary from region to region in both commercial and residential projects. There are two types of construction costs associated with each project, Hard & Soft Costs.

 

Hard Costs – represent any part of the work or costs associated with the actual project.

• Site – This includes all utilities, underground, aerial, drains, water systems, fire, grading, and paving.
• Building Structure – Any costs associated with the structure, which includes all labor and material required to complete the whole structure.
• Landscape – This includes grass, lawns, trees, mulch, shrubs, fertilizer, and every other material one would associate with the exterior based on the architectural drawings.
• Contingency – A contingency is a reserved amount of money covering all estimated and or unforeseen conditions that happen in the field of construction. Everyone should have a contingency built into their budget. A rule of thumb is you should set aside between five and ten percent of the total project costs for new projects and between ten and twenty percent for remodeling projects.
• Change Orders – Are changes in the scope of the project that would justify a change (up or down) in the total Hard cost of the project. A change order might be issued due to additional expenses related to the project that were not outlined or foreseen..

 

Soft Costs – Soft costs include advertising, architectural, engineering, financing, legal fees, lease administration, realty taxes, general administration, lease expenses, permit fees, insurance premiums, and other pre- and post-construction expenses such as a moving, data, and furniture cost.