What is Cost Development?Cost development is the process of estimating the cost of the project. We calculate the expense for every element and stage of the construction process to keep track of the money spent. The amount isn't set in stone, and sometimes property owners may pay more to get the job done. However, additional expenses are usually close to the predicted numbers, so you won't need to strain your budget too much.
Cost Development ExpensesDifferent projects have different requirements, which is why construction cost development is a customized service. We make a list of items needed for a project based on an architect's design and the owner's preferences. Here's a list of standard expenses to track:
- Land acquisition (includes the cost of improving and holding land)
- Site supervision
- Construction financing cost
- Planning and feasibility study costs
- Insurance and tax
- Office overhead
- Equipment and setups outside the construction process (facilities for contractors and on-site personnel)
- Cost of hiring architects and engineers for designing
- Cost for material and labor
These are just some of the many costs included in the estimate. We might add or remove some items based on your project requirements. The points mentioned in the list are estimates for an active project, and you may need a cost estimate for long-term expenses after the construction is complete.
Types of Cost EstimatesEven small projects like home renovation, extensions, or additions have many expenses. Keeping them organized is a challenge, which is why experts divide estimates into sections:
- Design – Design estimate includes the cost of hiring design professionals, architects, and engineers. It also includes forecasts for expenses related to the design and development process.
- Bid – Bid estimates include costs of hiring contractors, plumbers, electricians, gardeners, and painters. It also includes expenses for construction procedures, material purchase and storage, overhead costs, and profits.
- Control – Control estimates include the project monitoring cost and maintaining order. Keeping the project expenses within budget falls under this category, as well.
We will provide a detailed list based on current industry prices and even offer cost predictions. Our experts will explain the cost development report in detail so you can make informed decisions about the project. If you want to keep the construction price under control, getting a development report is essential.
If you want to know more about our construction cost development service, don’t hesitate to get in touch with us at Charles Hefner Architect. You can also call 818 793 1325.