Construction Estimating 2 Exam 2025 – 400 Free Practice Questions to Pass the Exam

Soft costs refer to expenses not directly tied to the physical construction of a building but are still necessary for project completion. These typically include fees for services, legal expenses, and permits, among others. Legal fees associated with project compliance fall into this category because they contribute to ensuring the project meets regulations, zoning laws, and contractual obligations, but do not involve tangible materials or direct labor.

In contrast, options involving concrete and aluminum, construction equipment rental, and overtime labor costs are classified as hard costs. These are tangible expenses directly associated with the physical construction process, encompassing the materials and labor required to execute the project. Therefore, the distinction between soft and hard costs is crucial for accurate budgeting and financial planning in construction projects.