ABSTRACT
This chapter deals with budgeting for all of the other costs except for interest, which completes the total project cost. It then focuses solely on the information necessary to complete the first four worksheets. To estimate financing fee: Accurate budgeting for construction interest is essential since it is the second biggest cost item after construction cost and requires management prowess to control. Four items that are not included in the construction estimate, which are normally associated with construction costs, need to be separately identified for lender financing. These are: bond, builder's risk insurance, demolition, and change order contingency. When calculating demolition some points to consider are: Change order contingency is that amount budgeted to pay for design errors and omissions during construction. As shown in these include: commissions, environmental report, ALTA survey, preliminary soils investigation, title work, and appraisal, real estate taxes during the construction period, and code and zoning analysis.
