Cost & contract · Glossary
Soft cost
Also called: indirect cost
Soft cost is the portion of a renovation budget that covers non-construction expenses: architectural drawings, engineering, permits, design fees, project management overhead, and contingency reserve. Soft cost typically runs 15–25% of total project cost.
Example
An ADU with $250,000 hard cost commonly carries $40,000–$60,000 in soft cost across plans, permits, and structural engineering.
Why this matters for renovation projects
Soft cost shows up on permits, contracts, or estimates that Renology covers across LA, San Diego, San Francisco, Seattle, Portland, and Denver. Most homeowners encounter the term once a project is already mid-flight, when there is no time to learn its mechanics without slowing the contractor. Knowing what it means before signing the contract is the difference between a clean project and an avoidable surprise. For how Renology calibrates cost ranges against permit valuations and contractor invoices, see the methodology.