Which items are typically included in Soft Costs?

Which items are typically included in Soft Costs?

• A. Due diligence, project design fees, commissioning, jurisdictional fees, relocation, terminating leases and rental agreements.
• B. Concrete, steel, and masonry materials.
• C. Site grading and drainage.
• D. Warranty and maintenance costs post-occupancy.

Answer: (A)

Soft costs are the non-physical expenses that support getting a project built, not the actual construction work or materials. Items like due diligence and feasibility studies, project design fees, the commissioning process to verify systems, jurisdictional fees such as permits, and costs tied to relocating occupants or terminating leases are included because they enable the project but don’t become part of the built structure. In contrast, concrete, steel, and masonry are concrete construction materials (hard costs). Site grading and drainage are site-work that adds to the construction itself (also hard costs). Warranty and maintenance costs after occupancy relate to post‑construction operations, not the construction or planning phases. So these listed items fit soft costs because they cover planning, approvals, and occupancy transitions rather than actual construction components.

Soft costs are the non-physical expenses that support getting a project built, not the actual construction work or materials. Items like due diligence and feasibility studies, project design fees, the commissioning process to verify systems, jurisdictional fees such as permits, and costs tied to relocating occupants or terminating leases are included because they enable the project but don’t become part of the built structure. In contrast, concrete, steel, and masonry are concrete construction materials (hard costs). Site grading and drainage are site-work that adds to the construction itself (also hard costs). Warranty and maintenance costs after occupancy relate to post‑construction operations, not the construction or planning phases. So these listed items fit soft costs because they cover planning, approvals, and occupancy transitions rather than actual construction components.