19 - [02] Dev_Costs [Development Costs]

Feasibility Suite Lead Developer Plus
1

Summary

  • :pushpin: Overview of Development Costs:
    Development costs encompass all expenses related to construction, soft costs, land acquisition, legal fees, and miscellaneous expenses. These costs are systematically divided into sections, with some data auto-populating from other sheets.
  • :building_construction: Project Scope Example:
    Example projects include 2 residential units and 36 commercial units for sale, along with 300 build-to-rent units. The methodology applies universally, regardless of project size.
  • :desktop_computer: Integration of Cost Data:
    Costs are automatically pulled into the development sheet from a dashboard, ensuring consistency and reducing manual entry errors. Gray cells in the sheet indicate calculated fields that should not be modified.
  • :moneybag: Funding Columns and Bank Considerations:
    Funding information reflects construction loans and percentages split between the developer’s equity and hard costs. This ensures accurate allocation of funding sources.
  • :memo: Cost Center Details:
    Users can customize cost centers, assign GST applicability, add contingencies, and specify project start and end dates. Centralized master data ensures consistency across projects.
  • :warning: Error-Checking Mechanisms:
    Built-in checks highlight errors, such as missing dates or mismatched totals, helping maintain data accuracy and integrity.
  • :1234: Forecasting and Cost Distribution:
    Cost forecasts use default methods like straight-line distribution or specific escalation models (e.g., ESCO). Steepness levels from 1 to 10 adjust the cost distribution curve.
  • :white_check_mark: Summary Sheets and Totals:
    Development cost sheets consolidate totals for all cost centers and stages, ensuring that projections match actuals.

Insights Based on Numbers

  1. 300 Build-to-Rent Units Example: Demonstrates the scalability of the methodology across projects of varying sizes.
  2. Steepness Levels for Forecasting: Using ESCO values from 1 to 10 ensures tailored financial projections.
  3. Error Alerts: Red flags for missing dates or misallocated costs are crucial for maintaining accurate financial records.