Analysis of Building Development
Land Purchase or Value
- Terminating former tenancies cost
- Growing crops-emblements
Environmental Engineering
- Hazardous Waste Assessment/Clean-Up
- Brownfield Credit and protection
- Wetlands determination and permitting
- On-Site disposal certification
- Clean Air Regs
- Radon
- Others
Architecture and Engineering (Should your architectural contract
include These features?):
- Design/Build
- Construction Management
- Architecture/Contractor
- Perimeter survey and contours
- Soil test (initial)
- Cut and fill supervision
- Traffic engineering
- Off-site improvements
- Street and utility profiles
- Utility systems
- Site work: Parking, walks, curbs, building signs
- Plot plan & Site Plan
- Structural systems
- HVAC
- Plumbing and sprinklers
- Electrical
- Working drawings
- Renderings
- Shop drawings
- "As built" drawings
- Tenant mix drawings
- Common facility details
- Supervision
- Draw certification (See Addendum)
- Store drawings
- Skeleton
- Final
- Approval of tenants' details
- Signs -approvals (common area signs and tenants' signs)
- Interior furnishings
- Specifications
- Bid documents
- Bid supervision
- Arbitration
- Travel and other rebate items
- Parking lot lighting plan and specifications
- Retaining walls, etc.
Off-Site Work
- Perimeter landscaping
- Roads, curb cuts, drive approaches, acceleration lanes
- Sidewalks
- Traffic control signs
Utility Systems and Ditches (on-site, off-site)
- Electric service and transformers
- Telecom, fiber-optics, TI , Cat lines
- Storm sewers and drains
- Irrigation ditches --move or pipe
- Sanitary sewers or manholes (pumping station?)
- Water lines
- Culinary
- Fire sprinkler loop
- Lawn sprinkling and watering
- Fire hydrants
- Gas lines
Demolition
- Insurance special
- Salvage and hauling
- Restore to usable soil condition
- Temporary barricades
On-Site Work
- Remove trees and top soil
- Fill, cut, compaction, and grading
- Fences and perimeter walls
- Sign: Identification, traffic control, and pylons
- Curbs, gutters and drains, walkways
- Road base and surfacing (asphalt)
- Striping
- Landscaping
- Sidewalk around buildings
- Parking lot lights
Building Construction
- Shell
- Tenant spaces, including space planning and occupancy permits
- Common area
- malls and common halls
- Restrooms and community halls
- Management office
- Mechanical, electrical, and janitorial rooms
- Elevators and escalators
- Common loading docks
- Garage and incrineration facilities
- Tenant construction and finish: cost or allowance
- Tenant fixtures
- Rough-in
- Installing
- Carpeting
- Furnishings
- Mall, lobby, or other common area furnishings
- Carpeting
- Directories
- Miscellaneous construction costs
- Permits municipal fees, utility connection fees, and meters
- Bonds
- Completion or performance
- Subcontractors'
- Architect's errors and omission
- Sales or use tax
- Builder's risk (or other) insurance
- Change orders
- Developer's Impact Fees
- Contractor's "general conditions" (on-site expenses)
- Job supervision and office and temporary toilets
- Temporary utilities (meters and bills)
- Telephone and travel
- Blueprints and shop drawings
- Tools and equipment rental; temporary fencing
- Security during construction
- Winter protection
- Snow removal
- Job clean-up
- Progress reports
- Contractor's "home office overhead"
- licenses and subcontracting
- accounting and billing
- employee reports and overhead
- Other potentially desired items (such as):
- Showers, jogging trails, picnic tables, kitchen, plumbing, lab
plumbing,
- private bathrooms, potential vending machines, docks,
freight/passenger
- elevators, SMART (full communications), security system, direct
metering
SOFT COSTS - fixed vs. variable costs
- In a build to suit, many of these costs are not incurred. Can you
name them?
Interest on Land Loan Until Construction or Opportunity Cost on Cash
Land Purchase
Advertising and Promotion
- Brochures
- Newspaper ads
- Media ads: radio, TV, journals, other
- Flyers to brokers, users, town officials, others
- Models, plans, aerials
- Receptions, gifts
Legal
- Land purchase agreements
- Partnership agreements
- Work on bank loan
- Lease development
- Tenant negotiations
- Construction/architectural contracts
- Title and other contracts
Accounting
- Financial analysis
- K-I or partnership forms
Bank Counsel
Bank Appraiser
Other Closing/Administration Costs
Real Estate Taxes Until Lease-up
Liability Insurance on Vacant Land
Terrorism Insurance
Builder's Risk Insurance After Construction
Liability Insurance After Construction
Environmental Warranty Insurance
- Secured Creditor's Insurance
Title Insurance
Land Loan-Points
Construction Loan-Points
Permanent Loan-Points
Construction Interest (See Addendum)
Lease-up Reserve
Minneapolis Commercial Real Estate - Building development
Developer's Fees
Commission/Leasing Fees
Consulting Fees
Utility Costs After Construction
Operating Costs After Construction
Lien Waivers
Prepayment Penalties
Contingency - or the 3 M's: mistakes, misfortunes, and
misrepresentations