Swapp Incorporates Construction Cost Estimating Capabilities Into It's Software
Updated: May 6
One of the first questions that real estate developers ask with every site evaluation is what the total cost of development will be, and what potential return on investment is expected.
In many cases, real estate developers use construction cost estimating software solutions in order to generate a realistic calculation of the necessary financial investment, and the potential return that they can expect to earn from it.
Swapp is expanding its Site Evaluation service offering by providing a detailed construction and development cost estimation feature in its software that calculates accurate feasibility costs and produces reports that describe the information developers need to make the right financial decisions
The Complete Property Development Cost Estimator
Swapp’s new feature provides an overview of the complete financial property development costs. The overview is divided into two sections: the first is construction costs, and the second is development costs.
Construction cost estimates consist of many system categories and elements. The weight of each system in the total cost varies depending on the project’s specific goals. For example, on some projects meeting certain sustainability goals is a priority. In that case developers will want to know what percentage of the cost is for HVAC or MEP systems that contribute to the sustainability goals. Or how cost might be influenced by a facade design that improves sustainability metrics.
Connecting Between Development Cost and Construction Cost
Even though development costs and construction costs are two separate things, they each affect one another. The new estimator is built in a way that the data in one corresponds with the other.
The reason behind this decision and function of the software feature is that there are some elements in the construction costs that directly affect the development costs and vice versa.
For example, developers in the UK can add the costs of Community Infrastructure Levy (CIL) into their construction and development cost estimations.
It's important to understand that the construction itself, while being the primary cost, is not the only expense that needs to be taken into account.
When property developers review a site, they need to get the full picture of site development in order to make the right decision.
Now, with this new addition to the feasibility study capabilities offered by Swapp, developers can get even more insights about the potential projects they are reviewing.