Hard Costs are tangible assets that you need to acquire
to complete the construction of your modular home project. Usually, hard costs are easily
quantifiable and can be determined with such certain that usually they are
detailed by an experienced modular new home builder. In general, hard costs
represent any part of the work or costs associated with the actual project.
One area that might surprise you that needs to be included
in your ‘hard’ costs is Contingency. If you forget to include this in your hard
costs, all the profit that you thought you were going to see will simply fade
away when those unforeseen contingencies rear their ugly heads.
Below is a list of common construction hard costs.
Building Structure- Hard costs associated with the
structure. This category includes all labor and material required to complete
the whole building or structure.
Site- The difference from the first one to this, is that
this category includes all utilities underground, aerial, water systems,
drains, fire, paving, grading, etc.
Landscape – Hard costs related to landscaping works,
including grass, lawns, trees, mulch, shrubs, fertilizer, and every other
material included in the construction of the projects based on the
architectural drawings.
Contingency- Contingency is a reserved amount of money
covering all estimated unforeseen conditions that might affect the construction
process. Although it is not an amount that you can measure, it can be estimated
from historical data between a five and ten percent of the total project
costs for new projects and between 10 and 20 percent for remodeling projects.
