When considering the budget, it is important to look at the overall project costs and not just the construction costs. This can be considered in terms of hard and soft costs. Hard costs refer to the cost of physical construction - foundations, finishes, labour, equipment, fixed furniture and fittings etc. Soft costs are not directly related to construction and include items such as professional fees, VAT, financing costs, statutory approval fees, insurance and any specialist consultants. Whilst costs vary between individual projects, a typical project would see the cost breakdown divided approximately 50 / 50 between hard and soft costs.