What type of damages are typically considered "hard" costs in a breach of contract scenario?

Direct damages are typically considered "hard" costs in a breach of contract scenario because they represent the actual losses that directly result from the breach. These damages are quantifiable and can be linked directly to the breach of the contract. For instance, if a contractor fails to complete a project on time, the direct costs incurred because of the delay—such as additional labor costs, material expenses, or lost profits directly attributable to the failure to perform—would be classified as direct damages.

In contrast, other types of damages tend to be less straightforward and are not considered "hard" costs. Consequential damages, for example, are indirect losses that are not a direct result of the breach but stem from the parties' unique circumstances, like lost business opportunities. Statutory damages are predefined by law and often do not directly relate to the actual losses incurred from the breach. Nominal damages might be awarded when a breach occurred, but no substantial loss resulted, highlighting a party's right without compensable loss.

Understanding these distinctions is crucial for accurately assessing the financial implications following a breach of contract in design-build scenarios.