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How to Estimate Land Development Cost?

posted by: Andrew Tate on: November 22, 2024

The most important job of any land development consultant is to Estimate Land Development Costs precisely. An accurate budget improves project planning and promotes seamless execution. Altering the land to construct a building is a crucial part of the process. The land needs to be construction-friendly. Creating a comprehensive budget is the best approach to avoid unnecessary expenses. This article serves as a comprehensive guide for land development and cost estimation.

Learn how to Estimate Land Development Costs for your next construction project and save a considerable amount of time and money with these simple steps!

Preparing for Land Development

Feasibility Check: Evaluate the practicality of the construction project before beginning anything.
Creating Blueprints: Collaborate with architects and designers to create structural designs.
Gaining Permits: Gain approval from local authorities to avoid any problems.
Create a Budget: Evaluate your needs and start to make a budget.
Get to Work!: With a detailed budget in hand, start your construction!

Land Development Cost Estimates Methods

There are three main methods for Land Development Cost Estimates.

Unit Pricing Method

The unit pricing method involves accounting for all the variables and pricing them individually.

Assembly Method

In the assembly method, the entire project is priced as a whole. It is quicker than the unit pricing method.

Square Foot Method

The square foot method is the most popular approach. The cost is calculated per square foot and then multiplied by the total area.

Factors Affecting Land Development Costs

Land Development Costs can depend on several variables. The cost calculator needs to take these elements into account.

Location

Prices of materials and labour can change according to the location of the site. If the building is situated in any remote area then transportation costs will also increase.

Environmental Red Flags

Environmental conditions such as surrounding buildings or weather conditions will also impact the cost.

Size

Larger projects are more cost-consuming than smaller ones.

Market Trends and Fluctuations

Market prices rarely stay stable. The cost of direct expenses such as materials can vary from time to time.

Time Constraints

Limited timeframes mean that more labour and equipment will be required to finish the work faster, thus increasing cost.

Estimate Land Development Cost With Precision!

The following steps will highlight how to estimate land development costs accurately and reduce the chances of cost overruns.

1) Evaluate the Extent of Work Required

The cost of land development depends on how much work is required. Go through the blueprints to analyze the structure. Site visitations also help to get clarity on current site conditions. There are several site work and earthwork types such as:

Surveying
Clearing and grubbing
Excavation and grading
Stabilizing the soil
Installation of utilities
Concrete and paving
Landscaping
Erosion control

2) Calculate Material Cost

To calculate material, make a list of the required materials along with their type and quantity. To find out an accurate quantity, take precise measurements of the construction site. You can also use material takeoff software such as Planswift, On Screen Takeoff, and Quest Estimating. Materials required for land development include concrete, masonry, rock etc. Survey the construction market to learn about recent prices. You can also use pricing guides such as RS Means.

3) Calculate Labor Expenses

One cannot estimate land development costs without accounting for worker wages. Labour cost depends upon the following factors:

Number of workers
Experienced vs apprentice labour
Hourly rate or flat rate charged
Time taken to complete the project
Indirect expenses related to labour such as benefits, extra time payment, insurance etc.

4) Cost of Equipment

There are various types of equipment required to level land. For example:

Excavators
Bulldozers
Harrow
Loaders
Tillers
Balers
Tractors
String Trimmers
Mulcher
Brush Mower

You may have noticed that most of this machinery is heavyweight. It will be extremely expensive to purchase everything which is why it is better to go for rental equipment.

4) Analyse Overhead Costs

Overhead costs are also known as indirect or soft costs of a construction project. It means that they are not directly linked with the building's structure but still impact the total cost. So make sure to include these expenses in your estimated land development costs. Some examples of overheads include:

Permits
Utility bills
Office supplies
Marketing fees
Transportation
Insurance
Administrative expenses

5) Take Professional Help to Estimate Land Development Costs!

A professional cost estimating services company can create an accurate estimate for future costs. Predicting a budget can be a tricky task. If you are stuck or confused, you can always collaborate with a professional and get expert insights. For contractors or subcontractors, creating detailed estimates can be an extremely time-consuming and hectic task. The solution is outsourcing! It will give you time to handle multiple projects at once and expand your business. Don't worry about land development expenses! In the hands of an experienced estimator, your project will be done in no time.

To Conclude!

Estimate land development costs with precision with the help of this guide. Being over or under budget is probably the worst thing about a project. An accurate budget can prevent extra expenses and improve the cash flow of the project. In addition to that, one can allocate resources effectively reducing the chances of wastage or overconsumption. When you have a solid expenditure budget, the construction plan will go on smoothly.

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