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The importance of costing in property development
1. THE IMPORTANCE OF COSTING IN PROPERTY
DEVELOPMENT : BRIAN LINNEKENS
While costing for any venture one must make sure that both direct and indirect costs
be taken into consideration. One needs to take care of all the costs as the budget
needs to kept under control at any costs lest one finds in the middle of the execution
of the project that the spending has exceeded much above the budget that was kept
aside.This particular scenario will surely go against the project and may even force the
developer to close the project feels Brian Linnekens.
According to Brian Linnekens of Gidevelopmentinc being aware of all the costs
involved while executing a project will surely work in making the project a success in
the long run. Keeping costs under control is as important as the execution of the
project itself.The two kinds of costs involved in the execution of any project are the
direct and indirect costs. Direct costs involve the land acquisition costs, engineering
costs, construction costs and marketing costs.Whereas indirect costs involve the fee
of attorneys, accountants, and other professional services that you avail while
executing the project.
Before even planning for a property development project one need to do the
feasibility study.Without a feasibility study it would be like groping in the dark without
any knowledge of the path that needs to be taken to reach a particular destination.
Feasibility study involves the analysis of the demand and competition along with the
chances of the success of the project in he long run.
2. One should always be aware of the pitfalls that come in the way of a successful
project execution.You need to check with your tax advisor about the type of entity
that’s going to work fine for you.You need to decide if you are going to build a
corporation, LLC, individually, partnership firm that’s going to execute the project.
Environmental issues need to be taken care of n advance as these issues can be quite
risky if they are not tackled in the very beginning. Both the phases in the
environmental issues need to be addressed in the very beginning.
You need to keep the delivery time at a time when you are very sure that the final
touches will be given to the project and you are in a comfortable position to deliver
the property. Construction cost overruns need to be taken care and addressed as they
crop up during the project execution.The pricing of the property needs to be done
very carefully as the rates in real estate keep fluctuating thus you need to design the
rates according to the current and future market trends.
To know more about Brian Linnekens and his property Development feel free to visit
: http://www.gidevelopmentinc.com