Construction Total Cost

A successful construction project includes a total project cost, construction (hard cost), and pre-construction (soft cost). Each budget serves a unique purpose and covers specific costs associated with the project’s lifecycle. The total project cost includes all project costs, from the beginning planning stages to the ultimate completion and handover. It comprises both hard costs (direct construction costs) and soft costs (indirect project management, administration, and permitting expenses).

Construction Cost (Hard Cost)

The construction (hard cost) budget is dedicated to the expenses directly associated with the physical construction process. It covers the costs of materials, labor, equipment, subcontractors, and other tangible aspects that make up the project’s structure.

Pre-Construction Cost (Soft Cost)

The pre-construction (soft cost) covers the expenses incurred prior to the start of actual construction. Fees for professional services, planning and permits, legal consultations, finance, site preparation, and other administrative tasks required for the project’s commencement.

Key Differences

The key difference between these three budgets is the type of spending they cover. The entire project budget includes all project costs, whereas the construction (hard cost) budget concentrates on the physical construction phase, and the pre-construction (soft cost) budget includes all expenses before construction begins.