The construction budget has six main components: land costs, hard costs, construction soft costs, marketing soft costs, developer's fee, and total construction financing costs. Which of the following would be considered a hard cost?
A) Carry costs
B) Costs of material for construction
C) Legal fees of the permitting process
D) Developer fees

Question

Quizplus · Accepted Answer

Hard costs refer to the actual physical construction costs, such as materials, labor, and equipment. The cost of materials for construction falls under this category. Carry costs (A) and legal fees (C) are considered construction soft costs, while developer fees (D) belong to a separate category.

The Construction Budget Has Six Main Components: Land Costs, Hard