Hard costs

Direct costs of physical construction, such as labor, materials, installed equipment, and site improvements. The precise boundary depends on the project’s budget conventions.

Why it matters

Consistent classification matters when comparing budgets, loan limits, and progress. Some budgets place contractor general conditions or fees in hard costs; others separate them. A comparison should explain those differences rather than assume identical categories.

In practice

A project example

A sitework allowance omitted from one hard-cost total can make two otherwise similar construction budgets appear materially different.

General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.