Monday, January 21, 2013

Hard Costs are the Most Essential Part of Quoting for the Modular Home Builder

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.

1 comment:

Anonymous said...

By these, it is wise to have an agency wherein they can help you establish your own desired home. Considering all aspects that will suite your budget. Anyways, thanks for this post.