In the realm of construction, there exists a realm known as “Hard Costs.” These costs, handled by seasoned estimators, embody the physical aspects of construction projects. Let’s delve into this world where 70 percent of a project’s total cost resides.
Hard costs intertwine with the intricacies of engineering and design in construction projects. Their manifestation varies, contingent upon architectural and engineering decisions. Here’s a breakdown of common hard costs components:
| Component | Description |
|---|---|
| Cost of Building Structure | Encompassing materials and labor, this includes the expense tied to the construction’s structural foundation. |
| Site Costs | Involving utilities such as aerial setups, drains, water systems, fire elements, paving, grading, and piping. |
| Landscaping Costs | Covering the expenses related to grass, lawns, trees, shrubs, fertilizers, and materials used in landscaping. |
| Contingency Costs | A safety net, ranging from 5 to 10% for new projects and 10 to 20% for remodels, to tackle unforeseen expenses. |
| Change Order Costs | Expenses stemming from alterations or modifications during the construction process. |
Hard costs assert their presence during the construction phase, heavily influenced by market conditions affecting material costs, labor expenses, and project scheduling. These costs are tallied from project initiation until the culmination of construction activities.
The journey of hard costs initiates with the procurement of supplies and materials throughout the project. Additional expenses for miscellaneous needs and inventory fall under this category. Furthermore, employee salaries and fees, persistent throughout the construction duration, are also considered hard costs.
To estimate hard costs, meticulous listing of required materials and equipment is imperative, considering local rates. Labor costs enter the equation through a comparative analysis of labor hours from analogous projects in the past.
In essence, the world of hard costs unfolds as a tangible and comprehensive domain within construction, where every brick, labor hour, and unforeseen twist finds its place in the economic tapestry of a project.