Construction · Defined
Soft costs
Project costs outside direct physical construction, commonly including design, legal, financing, permitting, insurance, and consulting expenses. Budget definitions should be stated explicitly.
Why it matters
Soft costs can continue when construction is delayed. A completion forecast focused only on the contractor’s work may miss added interest, consultant fees, insurance, or other carrying costs. Eligibility for funding is determined by the applicable agreement.
In practice
A project example
A delay may leave the construction scope unchanged but extend design-administration and financing costs for several additional months.
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.