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Understanding Soft Costs

Items included in soft costs on a construction project


Soft Costs constitute a big portion of your construction costs. A construction project is possible due to the soft costs, that when added to the hard cost and land cost, you will have the total cost amount for your construction project. Soft costs are traditionally non-seen items that composed the initial part of developing a construction project.

1. Architectural and Design Fees

By Brock Builders
The architectural and design fee includes costs incurred on feasibility studies, master planning, design costs, and all other cost included from schematic to project completion.

2. Inspection Fees

Cost of inspections, permits and fees paid to local government.

3. Land Costs

by Neil Ennis
Land costs associated with legal process, appraisal, real estate,land acquisition, assessments or improvementsto land related issues.

4. Off-Site

Some projects require to improve conditions in their neighborhood or to complete improvements to local infrastructure.

5. Equipments

Equipments not being incorporated in the final project delivery.

6. Interests

Cost of loan generated interests.

7. Accounting Fees

By Edinburghcityofprint
All accounting expenses and cost incurred during the development of the construction process.

8. Project Management

Staff required to handle all construction related documentation and drawings.

9. Insurances

All required insurances for the completion of the construction project.

10. Taxes

Money required by state and local agencies depending on the amount of money being invested in the construction.
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