In construction budgeting, what are considered hard costs?

Hard costs in construction budgeting refer to direct expenses that are tangible and necessary for the physical construction of a project. This includes costs for materials, such as concrete, steel, and lumber, as well as labor costs that cover the wages of workers on the job site. These expenses are easily quantifiable and represent the actual physical elements of building a structure. Understanding hard costs is crucial for effective budgeting, as they are fundamental to determining the total construction costs and ensuring that the project stays within financial limits.

The other options represent different types of costs that do not fall under the definition of hard costs. For instance, indirect costs associated with project management and expenses related to logistics and distribution are necessary for the overall operation of the project but do not directly contribute to the structure itself. Similarly, fees for architectural and design services are classified as soft costs, which encompass expenses that are not directly tied to the construction process but are still essential for project advancement.