Hard costs v soft costs
There are a wide variety of different construction costs that must be built into a project’s budget. Many of these can be divided into two categories; hard costs and soft costs.
Often referred to as 'brick-and-mortar costs', hard costs refer to the cost of physical construction, such as; foundations, superstructure, interior finishes, labourers, equipment, drainage and so on. Hard costs, being 'tangible', tend to be relatively easy to estimate but vary significantly according to the project type. For example, a complex facility such as a hospital will tend to have higher hard costs per square metre than an office building.
Soft costs are those costs that, unlike hard costs, are not instantly visible or tangible, and are not directly related to labour or building materials. This might include:
- Fees.
- Land costs.
- Off-site costs.
- Loans, accounting fees and interests.
- Insurances, permits and taxes.
- Public relations and advertising costs.
Unlike fixed equipment that is classified as a hard cost, moveable furniture and equipment are classified as soft costs. This includes items such as computer equipment, telephone systems, and so on. Costs that can continue post-completion such as maintenance, security and other up-keep-related fees are also deemed to be soft.
[edit] Related articles on Designing Buildings
Featured articles and news
Grenfell Tower fire – eight years on
A time to pause and reflect as Dubai tower block fire reported just before anniversary.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.
Construction contract awards hit lowest point of 2025
Plummeting for second consecutive month, intensifying concerns for housing and infrastructure goals.
Understanding Mental Health in the Built Environment 2025
Examining the state of mental health in construction, shedding light on levels of stress, anxiety and depression.
The benefits of engaging with insulation manufacturers
When considering ground floor constructions.
Lighting Industry endorses Blueprint for Electrification
The Lighting Industry Association fully supports the ECA Blueprint as a timely, urgent call to action.
BSRIA Sentinel Clerk of Works Training Case Study
Strengthening expertise to enhance service delivery with integrated cutting-edge industry knowledge.
Impact report from the Supply Chain Sustainability School
Free sustainability skills, training and support delivered to thousands of UK companies to help cut carbon.
The Building Safety Forum at the Installershow 2025
With speakers confirmed for 24 June as part of Building Safety Week.
The UK’s largest air pollution campaign.
Future Homes Standard, now includes solar, but what else?
Will the new standard, due to in the Autumn, go far enough in terms of performance ?
BSRIA Briefing: Cleaner Air, Better tomorrow
A look back at issues relating to inside and outside air quality, discussed during the BSRIA briefing in 2023.
Restoring Abbotsford's hothouse
Bringing the writer Walter Scott's garden to life.
Reflections on the spending review with CIAT.
Retired firefighter cycles world to raise Grenfell funds
Leaving on 14 June 2025 Stephen will raise money for youth and schools through the Grenfell Foundation.
Key points for construction at a glance with industry reactions.
Functionality, visibility and sustainability
The simpler approach to specification.