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CREATING A PROJECT DEVELOPMENT BUDGET PROJECT NAME

ORGANIZATION: ADDRESS:
Total Square Feet of Project: Amount You Can Borrow Interest Rate on Construction Loan Number of Months of Construction Assumptions

Development Budget
A. Acquisition Building / Land Building Inspections Other Subtotal Acquisition B. Construction (Hard Costs) Renovation Costs New Construction Construction Contingency Environmental Clean-up Permit fees, tap fees, utility charges Other Subtotal Construction C. Professional Fees Architecture & Engineering A&E Reimbursables Phase 1 Environmental Consultant Phase 2 Environmental Consultant Geotechnical Exploration Testing and Inspection Services Legal Fees Developer/Project Manager Services

Notes

Cost

Basis

Total Cost

Purchase Price Estimate

0
Per square foot Per square foot % of Construction Costs Estimate Estimate

10%

0 0 0

0 0 0

0
% of Construction Costs 8.5% Estimate Estimate (If Necessary) For New Construction For Renovation or New Construction Estimate % of project costs (excluding acquisition and furniture, fixtures and equipment.) 3.5%

Construction Estimator Other Subtotal Professional Fees D. Project Financing Fees and Costs Property Survey Estimate Appraisal Estimate Title and Recording Estimate Construction Escrow Fees Estimate Application Fees Estimate Financing Fees (0% for IFF; 1% for private loan) Percent of Loan 1% Interest Rate * Mo's of Construction 0% Construction Interest Lender Inspecting Architect Estimate Lender Legal Fees Estimate Other Subtotal Project Financing Fees and Costs E. Miscellaneous Real Estate Taxes Estimate Property / Builder's Risk Insurance Estimate Other Subtotal Miscellaneous F. Furnishings and Equipment Program Equipment Estimate Data & Communication Equipment Estimate Security Equipment Estimate Other Furnishings Estimate Other Subtotal Furnishings and Equipment

0 0

0 0

TOTAL DEVELOPMENT COST ESTIMATE

This worksheet is meant to provide introductory information and is not intended to replace the assistance of hired consultants and professionals. Creating a Project Development Budget

Taking Into Account All the Project Costs - The Development Budget
This development budget template is intended to encourage organizations to think through all the obvious and not so obvious expenses associated with acquiring a building or vacant land, renovating your current property or constructing a new facility. With a comprehensive understanding of all the costs of a development project, your organization can determine the true affordability and feasibility of the project. Adjustments can be made to the project scope to bring the budget in line with your agencys means. A development budget is an everchanging document; as you move through different phases of the development process, pre-development, construction, closing, the dollar amounts will change. It is critical to continuously update the budget as estimates become actuals and to balance the total project costs with the total funds you have available to complete the project. The tendency is for all parties to low ball estimates. Always, always, always include a contingency! PROJECT: ORGANIZATION: ADDRESS: Total Square Feet of Project: Estimate on Total Bank Loan: Interest Rate on Construction Loan Number of Months of Construction

Assumptions

Development Budget Acquisition Building Land Environmental Cleanup

Description

Measure

Cost

Basis

Total Cost

Include sales price, down payment (if not included) Include sales price, down payment (if not included) Based on the findings of the phase 1 and/or 2 environmental reports, the costs associated with the level or environmental problems with the property and your cleanup requirements. The professionals conducting the assessments should give you the cost estimates. It is recommended that electrical, structural, plumbing, roof, and mechanical inspections be conducted to determine the condition and potential costs to repair systems before you make an offer . Subtotal Acquisition

Purchase of Existing Building Purchase of Vacant Land If Necessary Estimate

0 Building Inspections Estimate

Other Construction (Hard Costs) Site Preparation

0 0

Includes demolition of existing structures, clean out of building, removal and installation of buildable materials. Cost per square foot for rehab of existing building as estimated by an architect, engineer, or general contractor. In Chicago, a rule of thumb is $60-75/square foot. Cost per square foot for new construction of building as estimated by an architect, engineer, or general contractor. In Chicago, a rule of thumb is $180-220/square foot. Percentage of total construction costs for additional costs associated with changes not in the original construction budget that may arise during the construction or rehabilitation of the building. A 15% contingency is conservative and may decrease when you have a final bid, however you should never estimate less than 10%.

Rehab Costs

(If not in Construction Estimate) Per square foot

0 New Construction Per square foot

0 Construction Contingency % of Construction Costs

0% Permit fees, tap fees, utility charges Contact your local building department and utility companies to inquire about these charges. Some municipalities waive permit fees for non-profits, contact your local office. Specific equipment needed to meet your program licensing regulations Subtotal Construction Professional Fees Architecture & Engineering For the design of the building, preparation of construction % of Construction documents and construction oversight. This cost is based Costs on a percentage of construction costs that is negotiated with your architect. This percentage should range between 7% and 10% of construction costs, but depends on the size of the project. Smaller projects usually have higher percentages. 0.0% A&E Reimbursables Direct administrative and printing costs the architect will incur during the course of the project that are not included in Architecture & Engineering fees. Amount to be negotiated with architect. Estimate Estimate

0 (If required for Licensing) 0 0

Facility Equipment Other

Taking Into Account All the Project Costs - The Development Budget
Development Budget Phase 1 Environmental Consultant Description An initial evaluation of a property or vacant land to determine any existence of environmental problems. A phase 1 is usually required by lenders for commercial or industrial properties. A follow-up to the phase 1 report if any indicated environmental concerns are identified during the phase 1. The phase 2 will assess the identified concerns through additional sampling and testing, and offers recommendations for removal and corrective actions of any critical environmental concerns. Conducted by a specialized engineering firm to further examine the foundation and soil conditions of your site. This helps determine if your site can support the design and construction of your project. Conducted by a specialized engineering firm to test materials during construction that support the overall structure of the building. Measure Estimate Cost Basis Total Cost

0 Phase 2 Environmental Consultants (If Necessary)

Geotechnical Exploration

For New Construction

0 Structural Testing For Rehabilitation

Accounting Services Legal (Project) Other Subtotal Professional Fees Project Financing Fees and Costs Property Surveys Legal description of property and a blueprint of a building or vacant land in terms of actual dimensions, utility and easement information. An opinion about a propertys value. Usually required by a lender before financing is approved. Services provided by a Title Company selected by you and your lending institution. You can call the Title company directly to inquire about costs for these services. Fees paid to a Title Company for overseeing your construction escrow account, which manages payments to contractors, maintains title insurance, etc. You can call the Title Company directly to inquire about costs for this service. Costs are usually based on the size of the construction budget and number of payouts. A fee that a lending institution charges for submitting a loan application. A mortgage fee which covers the lending institutions expenses. This fee is sometimes stated in points, with each point being equal to 1 percent of the loan amount. A mortgage fee which covers the lending institutions expenses. This fee is sometimes stated in points, with each point being equal to 1 percent of the loan amount.

Estimate Estimate

0 0 0 0

Estimate 0 Estimate 0 Estimate

Appraisals Title and Recording

0 Construction Escrow Fees Estimate

0 Application Fees Financing Fees Estimate 0 Percent of loan amount 1% Interest rate (multiplied by full loan amount for mo's of construction) 0% Estimate 0 0 0

Construction Interest

Lender Inspecting Architect

A separate inspector other than your architect required by the lender to review all work completed during the course of construction. Costs associated with preparation and review of loan transaction documents.

0 Estimate 0 0 0

Lender Legal Fees Other Subtotal Project Financing Fees and Costs Miscellaneous Real Estate Taxes

Taxes owed on the property that may be due and payable during the course of construction or rehabilitation. If taxes are unpaid during construction, the Title Company will not provide title insurance to you or the lenders. Insurance should be carried during the course of construction or rehabilitation. The cost of insurance depends on the size of your project. You should call your insurance carrier for a quote for general liability, property and builder's risk insurance. Percentage of selected soft costs that should be allocated for additional costs needed during the course of construction or rehabilitation.

Estimate

0 Insurance Estimate

0 Soft Cost Contingency % of select soft costs 0.00% 0 0 0 0

Other Subtotal Miscellaneous Developer/Project Management

Taking Into Account All the Project Costs - The Development Budget
Development Budget Services Description An individual or firm that assumes responsibility on behalf of the owner for management and oversight of the project. Fees can range from 3% to 5% of the total development budget. Direct administrative and printing costs incurred during the course of the project that are not included in direct service fees. Amount to be negotiated with developer/project manager. Measure % of project costs(excluding acquisition) 0% Estimate 0 0 Cost Basis Total Cost

Reimbursables

Subtotal Developer/Project Management Furnishings and Equipment Program Equipment Data & Communication Equipment Security Equipment Other Furnishings Other Subtotal Furnishings and Equipment TOTAL DEVELOPMENT COSTS $

0 0

Administrative and office equipment needed for operations. Allowances for phone and computer cabling and equipment. Equipment and cabling for a security system of the facility. Other necessary furnishings for operations in the facility.

Estimate 0 Estimate 0 Estimate 0 Estimate 0 0 0 0