What aspect of construction does "hard costs" primarily relate to?

Hard costs primarily refer to the direct, physical expenses associated with the construction process. This includes expenditures for tangible items such as materials, labor, equipment, and other related expenses needed to complete a project. These costs are easily quantifiable and are essential for the actual construction activities. The focus on physical aspects emphasizes the concrete nature of these costs, distinguishing them from other budget categories.

In contrast, indirect costs, theoretical estimations, and legal fees do not fall under the definition of hard costs. Indirect costs, like those related to marketing, are not directly tied to specific construction activities. Theoretical estimations pertain more to planning and forecasting without a concrete basis in the physical realities of the project. Legal fees, while important for contract management, relate to the legal aspect rather than the physical execution of the construction itself. This distinction makes the understanding of hard costs crucial for effective budgeting and project management in construction.