Hard Construction Costs include which of the following?

Prepare for the Ontario PHBI Financial Planning and Management Test. Study with flashcards and multiple choice questions, each with hints and explanations. Ensure your success with adequate preparation!

Hard Construction Costs primarily refer to the direct costs associated with the physical construction of a property. These costs often include expenses for labor, materials, permits, and any equipment rented or purchased specifically for the construction project.

The correct choice involves builder permits and framing materials, as these are essential components directly associated with the construction process. Builder permits are necessary to ensure that the construction complies with local regulations, while framing materials are used to create the structure of the building itself.

Legal expenses related to property transactions and property taxes, while important in their own right, do not fall under hard construction costs. Legal expenses are typically considered as part of the soft costs associated with acquiring property or securing financing, and property taxes are ongoing costs unrelated to the actual construction activities.

Thus, the inclusion of builder permits and framing materials in hard construction costs is what distinguishes them from the other items listed, which do not directly relate to the physical construction of a property.

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