CE Practice Questions
Landscaping is not part of the calculation for this question, but would it be considered a hard or soft cost? I have heard both.
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For this question, landscape restoration is considered a hard cost because it's part of the work that requires labor and equipment to complete it. It has a .1 (10%) multiplier in the calculations for the correct response, indicating it is part of the hard cost retainage calculation.
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Engineering is considered a soft cost the same way architectural services are considered a soft cost: it's not part of the built conditions. Hard costs involve the physical work and movement to construct and build, while soft costs are the coordination and drafting/calculating to demonstrate the work to be performed.
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Hard Costs vs. Soft Costs
1. Hard Costs
- These are the tangible, direct costs of physically building a project.
- They include anything you can touch, install, or construct on the job site.
- Examples:
- Site grading
- Concrete
- Steel
- Carpentry
- Landscaping (Yes! Even landscape restoration, if it involves physical labor and materials)
- Roofing
- HVAC systems
- Laborers and subcontractors doing physical work
In short, if it’s about bricks, sticks, and laborers, it's a hard cost.
2. Soft Costs
- These are the indirect, intangible costs that support the project but don’t result in a physical piece of the building.
- Examples:
- Architectural fees
- Engineering (structural, MEP, civil)
- Permitting and legal services
- Insurance and bonding
- Project management and admin
- Financing and interest
- General Conditions (if overhead, not physical work)
Think of it this way, if someone is working at a desk or in a support role and not swinging a hammer, it's a soft cost.
Rajan K.
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