The true cost of a property development project

You have confirmed the price of your building. Not the cost of your property development project.

 

Why is the initial valuation of an industrial site often incomplete?

At the start of a project, the estimate focuses on the building itself. Items that are uncertain at this stage (taxes, utility connections, ICPE assessments, etc.) are often excluded from the scope.

The result is that you don’t have full control over the overall investment.

 

Where are the discrepancies hidden?

🔸Connections: A high-voltage electrical connection or a complex rainwater management system regularly costs more than €40,000.

🔸Development Tax: For properties of 3,000 m² or more, two instalments are due even before handover: 50 per cent in the 9th month and 35 per cent in the 18th month.
🔸Specific studies: Geotechnical, hydrological, and diagnostic studies; the initial budget does not account for the costly work that these studies will inevitably reveal (special foundations, retention basins, remediation, etc.).
🔸Areas related to the project: IT, relocation, change management, process analysis, mobility, renewable energy…

The Impact on Your Cash Flow

These expenses are essential. They must be included in the budget from day one. An incomplete budget doesn’t eliminate the expense—it merely postpones it. And your financing plan must absorb it right in the middle of the project.

 

The “OpenBook” Model: Full Awareness of Your Expenses

At OpenBox Co Design&Build, we prioritize comprehensive financial modeling from the conceptual design phase onward: 100% of ancillary, regulatory, and tax costs are included in the financing plan.

Our margins and actual purchase prices are shared openly with the finance department.

Above all, we're here to assist you with all matters related to the construction process.

 

Whether or not we include these services in our final proposal, you’ll have a comprehensive and reliable overview of your actual expenses.

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