Soft costs
A non-construction-related cost that is essential to project planning and execution, such as design, permitting, and legal fees.
Soft costs are indirect expenses associated with a construction project, such as design fees, permits, and legal fees. They are crucial for comprehensive budgeting, financial planning, and project viability. Understanding and managing soft costs helps ensure that all project expenses are accounted for, supporting accurate cost estimation, resource allocation, and financial control, contributing to successful project delivery by aligning budgets with overall objectives and constraints.
Used in a sentence
Soft costs were factored into the overall project budget.
Synonyms/variation
Indirect Costs
Stay updated on what’s happening in construction.
Subscribe to Blueprint, Procore’s free construction newsletter, to get content from industry experts delivered straight to your inbox.
Learn MoreLearn more about Soft costs
What Happens When Data Drives the Business?
Construction has long been seen as a low-margin industry. But what if the real problem isn’t the margins—it’s how decisions get made? In episode 17 of The Power of Construction, we sit down with Indra Gutiérrez, President of Gutier, who’s transforming what’s possible when data drives business decisions. Starting with zero capital, she’s built a […]
How GCs Gain Control and Insight With Budget Tracking Tools
General contractors (GCs) operate on razor-thin margins. The unexpected can easily eat into their profits — or even mean taking a loss on a project. Fortunately, budget tracking tools are giving GCs greater control and insight, helping them protect their bottom line. With these types of tools in play, contracting firms gain the ability to […]
Using Standard Operating Procedures for Better Contract Management
Every construction project is different, meaning that GCs have to be continually agile and strategic about applying their experience. Major categories change from project to project, from the owner to the delivery method. Fortunately, that doesn’t mean the GC goes into the project blind: They have the contract to guide them. The contract documents should […]
How GCs Can Enhance Financial Accuracy with Automation Tools
Automation is super-powering construction. Many teams now use autonomous drones or other self-driven devices to capture progress on the jobsite alongside systems that automatically remind stakeholders to review submittals and respond to requests for information (RFIs). There’s no shortage of places where automation is helping construction professionals get more done with less effort. Still, there’s […]
How can we improve this glossary entry?
By clicking this button, you agree to our Privacy Notice and Terms of Service.