What are soft costs?
Soft costs are indirect or “off-site” costs not directly related to labor or materials for construction. Examples of soft costs include building permits and architectural fees. Soft costs are disbursed monthly on an “as needed” basis, with invoices, receipts, cancelled checks or other evidence of payment. However, soft costs such as builder overhead/supervision are disbursed in proportion to the percentage of completion of the home.
Soft costs are those costs associated with managing the project including the architects work, the construction manager and other fees such as asbestos removal, insurance, legal fees and permits, equipment and furniture, site testing and repairs, temporary structures both for storage and to educate children while the building is in a construction phase and landscaping when the work is complete. listed above.
