If you are planning a building project, you are keenly interested in how much your project will cost overall. The most common problem in estimating project costs is that the whole construction industry looks at your project from their point of view. They think "project cost" and "construction cost" are the same thing. They are not.
What makes up Project Costs?
The main component of Project Costs is construction cost, but construction cost might be only 60% of your Project Costs. Construction cost is rarely more than 85% of your project cost. An extra 15% to 40% can be a devastating surprise. Project Costs consist of construction costs, known as hard costs, and soft costs such as design fees, and financing costs to name two of the largest.
Who can estimate Project Costs?
Your Architect is probably in the best position to estimate Project Costs, but anyone can do it, including you.
When can you estimate Project Costs?
You can, and should, estimate Project Costs anytime you want to know how much the project is going to cost. The earlier you estimate the Project Costs the "rougher" the results will be. However, with that in mind, you can estimate Project Costs today and at any time during the development of your project.
How to estimate Project Costs
The key to estimating Project Costs is to do two things. First, include all the items you find in the list below. Second, include a contingency amount that is appropriate for the stage at which you are in the project. Early in the project you will not know everything and your contingency should be at least 15%. When your project is under construction, you will know almost everything and your contingency can be reduced to 5% or less.
Project Costs
You can take advantage of a shortcut worksheet if you have an estimate of the size of the addition, buildng or remodeling that you are considering. Simply download our "10 Minute Budget".
What makes up Project Costs?
The main component of Project Costs is construction cost, but construction cost might be only 60% of your Project Costs. Construction cost is rarely more than 85% of your project cost. An extra 15% to 40% can be a devastating surprise. Project Costs consist of construction costs, known as hard costs, and soft costs such as design fees, and financing costs to name two of the largest.
Who can estimate Project Costs?
Your Architect is probably in the best position to estimate Project Costs, but anyone can do it, including you.
When can you estimate Project Costs?
You can, and should, estimate Project Costs anytime you want to know how much the project is going to cost. The earlier you estimate the Project Costs the "rougher" the results will be. However, with that in mind, you can estimate Project Costs today and at any time during the development of your project.
How to estimate Project Costs
The key to estimating Project Costs is to do two things. First, include all the items you find in the list below. Second, include a contingency amount that is appropriate for the stage at which you are in the project. Early in the project you will not know everything and your contingency should be at least 15%. When your project is under construction, you will know almost everything and your contingency can be reduced to 5% or less.
Project Costs
- General Construction
- Sitework
- Furnishings
- Communications
- Security
- Land
- Survey
- Soils Investigation
- Architectural & Engineering Fees
- Quality Control
- Project Insurance
- Legal & Accounting Fees
- Fund Raising Fees
- Interim Financing
- Contingency
You can take advantage of a shortcut worksheet if you have an estimate of the size of the addition, buildng or remodeling that you are considering. Simply download our "10 Minute Budget".