- Hard costs — physical construction (labor, materials, equipment, site).
- Soft costs — design fees, permits, financing/interest, insurance, legal, testing, developer fee.
- FF&E — Furniture, Fixtures & Equipment.
- Contingency — reserve for the unexpected (often 5–15%).
- Escalation — expected cost increase over time (inflation/market).
- Value engineering (VE) — lower-cost ways to achieve the same function.
- Change order (CO) — documented post-contract change to scope/price/schedule.
- Retainage — % withheld from payments until satisfactory completion (often 5–10%).
- Lien waiver — waiver of lien rights upon payment; protects owner's title.
- Performance / payment bond — surety protecting the owner if the contractor fails to perform or pay subs.
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