DC General Contractor Practice Questions - District Of Columbia General Contractor Exam

A DC contractor is estimating a project. What is the difference between a 'hard cost' and a 'soft cost'?

Hard costs are paid in cash; soft costs are paid by credit Hard costs are direct construction costs (labor, materials, equipment); soft costs are non-construction costs (design, permits, financing) Hard costs are fixed; soft costs change daily There is no difference; the terms are interchangeable

Correct Answer:

Hard costs are direct construction costs (labor, materials, equipment); soft costs are non-construction costs (design, permits, financing)

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