Hard Costs
Hard costs are the direct "bricks and mortar" costs of constructing a project, commonly including improvement costs and site work and often including land as part of the hard-cost component in program cost analyses. HUD research describing development costs treats hard costs as construction-related expenditures (and frequently distinguishes them from soft cost components such as financing and fees).
- Where it applies
- Generally, not specific to New York
- When it comes up
- Budgeting; procurement; construction
- Property types
- All
In practice
Operators often separate "hard cost contingency" from "soft cost contingency" to preserve cost-control clarity and lender/investor reporting fidelity.
Related terms
Construction Terminology
- Change Order
- Construction Management at Risk (CMAR / CM@Risk)
- Design-Bid-Build
- Design-Build
- Guaranteed Maximum Price (GMP)
- Lump Sum
- Punch List
- Shop Drawings
- Soft Costs
- Submittals
General information, not legal, tax or financial advice.