Project Budget Basics
Get the whole picture when planning your budget.
When you start planning your project, understanding what the project will cost is really important. The total budget for your project is more than just the cost of materials and labour.
Construction costs are just one part of a budget. A project budget should includes two main categories:
Hard costs are costs directly associated with the physical construction of the project. These are typically covered in what we refer to as the ‘construction cost.’ Remember to add HST or any other sales taxes when you start to estimate hard costs. Examples of hard costs include:
- The cost of materials used to build the project. This includes things like concrete, steel, lumber, roofing materials, plumbing fixtures, and electrical components.
- The cost of labor. This includes wages and salaries for construction workers, contractors, and subcontractors.
- The cost of equipment.
Soft costs are expenses that are not directly tied to the physical construction of your project, but are necessary for the completion of the project. Examples of soft costs include:
- Construction contingency
- All consultant fees - architectural, structural engineering, etc
- Municipal Zoning Review fee, Committee of Adjustment fee, Building Permit fees, water and hydro permits etc.
- Land cost
- Digital as-built drawings of existing buildings
- Financing costs
- Temporary accommodation (Do you need to rent somewhere to live while you build?)
- Moving costs
- Legal fees
- Loose furniture
- Feature lighting
- Window coverings
- Security system
- IT system
- Audio visual
- Finish landscaping - hard and soft scape, exterior lighting
- Power and heat during construction, unless agreed otherwise
This website, including all data and information incorporated herein, is being provided for information purposes only and is not intended for and has not been approved for use for construction at any location. For certainty, The University of Toronto, John H. Daniels Faculty of Architecture Landscape and Design and LGA Architectural Partners provides no representation or warranty regarding any use of or reliance upon this website, including no representation or warranty that this website complies with applicable laws (including any applicable zoning by-laws or building code requirements) and no representation or warranty that any cost estimates included in or based upon this website have been validated by the applicable market. Any use of or reliance upon this website by any person for any purpose shall be at such person’s sole risk and The University of Toronto, John H. Daniels Faculty of Architecture Landscape and Design and LGA Architectural Partners shall have no liability or responsibility for any such use of or reliance upon this website by any person for any purpose. Prior to any use of or reliance upon this website by any person for any purpose, consultation with a professional architect duly licensed in the applicable jurisdiction is strongly recommended.