Soft Costs in Construction

Homeowner's Ask November 24, 2017

Hi Russ, we are preparing to build our new home and wondered if you could help educate us on what costs to expect outside of the estimate from you. – ML

Considering a new home or renovation project? Be sure to factor in some soft costs you might encounter that don’t come through your builder. We’ve listed the most common ones to help you with your planning.

BC Hydro

More electricity is used during construction which can increase your hydro bill
Watch for power line connection and disconnection charges on your account

Insurance

Your house insurance is meant to be changed during a renovation due to increased activity, dangerous tools, heaters and other equipment being used in construction

Loans, Interests and Taxes

Loan generated interest
Bank transaction charges
Mortgage broker fees
Accounting fees
Taxes

Move In / Move Out / Lodging

Hotels or temporary lodging
Restaurant expenses
Increased fuel usage if traveling from a further distance
Occasional time away from work to engage with the project

Other Fees

Interactive Construction includes more than just putting nails into a house when pricing a job, so you may find these items in your planning estimate from us. You might not see these costs in a typical construction estimate, but most are usually required to complete the process.

Plan creation & design
Building permits
Other municipal fees (new water main, sewer main, etc.)
Engineering (Structural, Geotechnical)
Variances that may be required
Land surveys
Hazardous materials testing that may be required

And let’s not forget the budget you’ll need for that big house warming party!

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Russ Barry 1 Comment 1 Likes

About the Author

Russ started in the construction industry at an early age and worked his way up steadily ever since. After 5 years of renovation experience, he spent 10 years with a luxury home builder in Victoria as site foreman. Always looking for a new challenge and opportunity for growth, starting Interactive Construction was the next logical step in his career. Running Interactive allows Russ to combine his extensive construction experience with his computer programming expertise. This combination has helped build a company that offers state of the art project management coupled with high-quality home construction.

One Comment

Reply
Angelina Mathew Says :
Posted on July 20, 2018 at 1:34 am
Hi Russ,
That was indeed an informative blog post. We were planing to renovate our home. Never thought about these extra expenses. Thanks for sharing this.
Regards
Angelina

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