Soft Costs vs. Hard Costs

credit-score-factors1When it comes to renovating or home building, everyone is usually concerned about one thing… the cost!   While this should be a very important consideration, it shouldn’t be the only one.  After all, you’re investing in a very important asset.

With any work or purchase, the general consensus is to get at least three quotes, but it is very rare to receive the same cost estimates from each General Contractor and sometimes there can be quite a gap. We have a simple tip to help you compare costs between potential General Contractors.

First, compare the soft costs of all the Contractors you’re considering. Soft costs refer to the budgets allotted for things like the kitchen finishings, plumbing materials, flooring, lighting, cabinets, etc.

Second, compare the hard costs. These refer to the actual costs for specialty trades people like plumbers and electricians, general labour, and specific tasks like excavation.

Do not be afraid to ask the General Contractor to justify their costs!  This step not only makes you understand the cost of the job, but will also let you know just how much your prospective General Contractor knows about the work you want to hire him to complete.

What positive or negative experiences have you had when searching for estimates with General Contractors? Let us know in the comments!