Property Development Property Development Costs

Date Published:

03/06/2009

What will the actual work cost you? Here's how to estimate it.

Paying For A Project Manager

If you won’t be around to do the project yourself full time, you really need to employ a project manager who will oversee all the trades on site, help you with building regulations and planning permission issues, and alert you to any issues that arise during the development . Your builder may be able to recommend a good project manager. You need to choose someone who has plenty of experience in the type of project you’re developing. You should budget between 10 and 20% of the total project value for a project manager’s fees - but bear in mind that they might be able to get better deals on materials than you can, and a good one will make you other savings all round..

Paying For Labour And Materials

You will need to budget for any outside labour you intend to use. Get written quotations from several builders, traders or service suppliers. Ensure your contract includes a clause to cover extra work and extra costs that may occur. Find a builder at the Federation of Master Builders website, find a roofer at National Federation of Roofing Contractors, find a plumber at Institute of Plumbing, find a gas fitter at the Gas Safe Register, find an electrician at The Electrical Contractors Association and find a glazier at The Glass and Glazing Federation.

If you are using a builder find out if the quote includes materials. Otherwise www.upmystreet.com gives you the location of the nearest builder’s merchant, DIY shop, tool hire centre, plumber’s merchant and tile stockist. Remember to shop around to get the best price and don’t be afraid to haggle. The same applies to all fixtures and fittings you buy for the property.

Planning Permission And Building Regulations

These are official ways of controlling the safety and legality of the work and suitability of any alterations you wish to make. If you don’t comply you are breaking the law and may have to undo any work you have spent out for. For fees, information, guidelines and application forms for building regulations and planning permission, contact you local council planning office.

Plant Hire

If you’re planning on knocking down walls or adding an extension, you need to think about plant hire. This may include skips, scaffolding and concrete mixers. Check with your builder whether these are included in the overall fee for building work, and find out what insurance and licences are included.

Decoration & Furnishings

Keep decoration simple to save money. Stick to one colour scheme throughout the property. Ensure you budget carefully in advance for furnishings. Consider secondhand furniture and fabrics if they look good and will show off your property development to the max for potential buyers or tenants, but ensure they meet current fire regulations. Unwanted furniture can be sold with the property price if you don’t want to pay storage costs.

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