A cost analysis is a more in depth way to get a construction budget from a preliminary design. The developers do not want to invest any more money out of their pocket than absolutely necessary. Therefore, they will purchase the bare minimum architectural design to represent their vision of the project they are planning. It is all about accurately determining the total soft cost and hard cost of the project so they are able to get the amount of financing required to complete the project.
HKJ Performs Experienced Cost Analysis and Serves Apex, Wilmington, Raleigh, Virginia, South Carolina, and North Carolina
Once financing is in place, it pays for the developers soft cost, design, salary, etc. and does not come out of their pocket. The worst case scenario is when they have hundreds of thousands of dollars invested in the design and pricing and learns they do not have enough money to move forward with the project. Even worse, they learn when the project is 75% complete that they did not include enough contingency in the funding and do not have enough money to complete the project.
We are commonly asked whether we do this for all of our clients or is it a service that needs to be requested. When it is requested, we do it without charge to the client.
Why Should a Client Choose to have HKJ do Their Cost Analysis?
Accuracy is critical to this process and HKJ has a very extensive database of historical data to consult when preparing a preliminary budget. We have very experienced personnel who can empathize with the developer to see his vision and apply the correct pricing to a concept that is not clearly delineated on a drawing. This requires skills beyond just experience: you must be an excellent listener and an excellent communicator. You must be articulate in confirming what you heard is what the client actually stated and you must have the writing skills to communicate your thoughts clearly back to the client. Our firm is very fortunate to have a number of people with these skills.
Contact us today at (919) 303-3652 and let the professionals at Harold K. Jordan & Company handle your next building project.
Harold K. Jordan & Company is a residential and commercial renovation and general contracting company serving Apex, Wilmington, Raleigh, Virginia, South Carolina, and North Carolina.