![]() Architectural and engineering costs, insurance and bonds, and legal and accounting fees are included here. Soft costs, also called indirect costs, include design and other services that might be needed for a project, but aren’t directly tied to the building or materials. A contractor determines these costs based on pricing they receive from subcontractors and suppliers, as well as the costs to employ their own workers. Hard costs are for the actual construction of the building, including materials, labor, and equipment costs. Learn how to create a construction budget (and stick to it) 1. There are four main parts of a construction budget when you’re breaking down income and expenses for any project, whether residential or commercial. The four key parts of a construction budget
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