Hard costs in construction cost estimation are the costs of physical construction elements like foundations, superstructure, interior finishes, laborers, equipment, etc. They are the tangible costs in a construction project that are relatively easy to estimate.
Hard costs in construction are quantified by an experienced estimator. These costs account for around 70 percent of the total construction cost of a project.
This article discusses the features and components of hard costs in a construction project.
Contents:
Components of Hard Costs in Construction Project
Hard costs are related to the engineering and design process of the construction project. They vary depending on the architecture and engineering decisions. The common costs that fall under hard costs are:
- Cost of building structure: This includes the cost associated with the structure, i.e., cost of material and labor.
- Cost at the site: This includes utilities like aerial, drains, water systems, fire, paving, grading, piping, etc.
- Cost of landscaping: The cost of grass, lawns, trees, shrubs, fertilizers, and material used for the landscaping works is included under hard costs.
- Contingency cost: It is a reserved amount estimated to tackle unforeseen conditions and related expenses. It is taken as 5 to 10% of the total cost for new projects and 10 to 20% for remodeling projects.
- Change order costs
Features of Hard Costs in Construction Project
- Hard costs are incurred when the project is in the construction stage.
- Hard cost estimation is dependent on the market conditions as this affects the cost of materials, labor, and project scheduling.
- Hard cost is calculated from the start of the project and until the construction activities are completed.Â
Estimation of Hard Costs in Construction Project
Hard costs start with the purchase of supplies and materials during the course of the project. Extra costs for other miscellaneous needs and inventory requirements are also categorized under hard costs. Along with this, costs of employee salaries and fees are also considered hard costs, as they are to be paid throughout the entire course of the construction.
Hence, hard costs can be estimated by making a list of all the materials and equipment required for the construction projects as per the rate in the area. After which, the labor costs are calculated by comparing and researching the hours of labor required for a similar project in the past.
FAQs
Hard costs in construction cost estimation are the costs of physical construction like foundations, superstructure, interior finishes, laborers, equipment, etc
The common costs coming under hard costs are:
1. Cost of building structure
2. Cost at the site
3. Cost of landscaping
4. Contingency cost
5. Change order costs
Hard costs can be estimated by making a list of all the materials and equipment required for the construction projects as per the rate in the area. After which, the labor costs are calculated by comparing and researching the hours of labor required for a similar project in the past.
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