Construction Costs

From Investment Wiki

These are all costs associated with the construction process. They would include all direct costs such as building permits, materials, productions, and equipment, labor used in the construction process, security during construction, contractor's shack and temporary fencing, material storage facilities, power line installation and utility costs, contractor's profit and overhead, including job supervision, coordination and management, worker's compensation, fire, liability and unemployment insurance, and performance bonds. They would also include indirect costs such as architectural and engineering fees for plans, plan checks, surveys to estimate building lines and grades, environmental studies, appraisals, consulting, accounting, legal fees, the cost of carrying the investment in land and contract payments during construction, all-risk insurance expenses and property taxes during construction, the cost of carrying the investment in the property after construction is complete but before stabilized occupancy has occurred, supplemental capital investment in tenant improvements and leasing commissions, marketing costs, sales commissions, and applicable holding costs to achieve stabilized occupancy in a normal market, and administrative expenses of the developer....