The developer will face a variety of costs throughout the project's life. Which of the following would be classified as a soft cost?
A) Legal fees of the permitting process
B) Costs of materials
C) Labor cost of subcontractors for construction
D) Cost of land

Question

Quizplus · Accepted Answer

Soft costs are typically expenses that are not directly related to the physical construction of the project. They include expenses such as legal fees, design and engineering fees, permits and taxes, and other administrative costs. Out of the options given, legal fees of the permitting process would fall under the soft cost category. The other options are all hard costs, as they relate directly to the physical construction of the project.

The Developer Will Face a Variety of Costs Throughout the Project's