No builder can start any construction project anywhere in the world without incurring pre-construction costs (typically 1-7% of the expected project cost).
So if you want to use our services, it's important to acknowledge this fact and/or reality and not waste our time, because it's not compulsory that you pay us to complete these preconstruction checklist for you before actual construction begins, as you can do these yourself and submit the results to us to proceed, if you don't want to pay us to do that on your behalf.
We only step in to assist serious prospective clients with some preconstruction costs, alleviating their cost burden, but not incur the full preconstruction costs. But we are entirely responsible for procuring the required building materials for your project, and paying for labour for your project (Bill of Quantities).
A. WHAT ARE PRECONSTRUCTION COSTS?
In as much as, we offer you Construction on Credit for any of your building project, and allow you to repay later after completion, there are some costs you are expected to incur at the Pre-Construction stage before actual construction starts.
Preconstruction costs could cover the cost of eligible items incurred prior to the start of construction, including project planning costs, architectural fees, deposits and process payments on eligible machinery and equipment, rights- of-way purchases, land, and purchase of mineral rights.
You don't have to necessarily incur these preconstruction costs with us, as you can incur them yourself or via other qualified professionals and furnish as with the results. But if you have to incur some/all of these preconstruction costs with us, we can defer most of these preconstruction costs till after completion by putting it on the final project cost, to reduce the cost burden on you.
Construction Project Cost = BoQ + Equipment Costs + Other Costs, or
Construction Project Cost = BoQ + Preconstruction Costs.
B. TYPICAL PRECONSTRUCTION COSTS
Snapshot of some costs associated with our Build Now Pay Later services (or any Construction Project anywhere in the world, for that matter):
1. Mandatory Preconstruction Checks
2. Architectural & Structural (or Engineering Drawings)
3. Bill of Quantities Preparation
C. PRECONSTRUCTION COST BENEFITS
Starting a construction process without knowing the preconstruction costs involved can lead to:
- Project delays and quality issues
- Poor response to risks that can arise during construction
- Financial issues caused by inaccurate budgeting and unforeseen expenses
- Regulatory and legal compliance problems
D1. MANDATORY PRECONSTRUCTION CHECKS
It's mandatory to satisfy this requirement, but not compulsory to pay us to do it for you. Mandatory Preconstruction Checks 'is' only one aspect of preconstruction costs: these checks which are fully borne by the project owner, covers a detailed verification on proof of ownership, unencumbered and/or non-litigation status of your land and any structures on it.
Other preconstruction costs like surveys and environmental reports, Architectural and Engineering Design Fees, Building Permits and Legal Fees, Utility Installation and others may be borne by us upfront on your behalf fully or partially.
D2. ARCHITECTURAL DRAWINGS (AND WHERE APPLICABLE STRUCTURAL DRAWINGS)
If you're choosing any of our sample designs, the cost of it is usually included in the final project cost. However, if you have to draw a new design yourself using your own architect, that will come at your own cost, but if you're asking us to draw up a new design using own own in-house architect, you may be required to commit a small part-payment whilst we accommodate the rest in the final project cost estimate.
D3. BILL OF QUANTITIES (BoQ) PREPARATION
Before we can come up with the final project cost, we first need to to come up with the BoQ, and we cannot get the BoQ without the drawings (architectural with/without the structural drawings, where applicable).
D4. BUILDING PERMIT PROCUREMENT (IF NOT AVAILABLE)
We don't any construction project without a valid building permit.
D5. BOREHOLE DRILLING (OPTIONAL)
It's not compulsory to provide us the water source as we can include it in the project cost by using buying water into storage tanks for our construction. However, we always recommend the borehole drilling option for all our project owners.
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