ᐅ Carrying Out Excavation Work Using Own Equity?

Hello everyone,

Does anyone have experience with whether payment for earthworks (and I mean really just “excavation”) can, similar to land costs, be counted as equity?

Or would carrying out the work outside or before the main financing be very disadvantageous?

The idea is to gain concrete certainty about the overall complexity of the project through the specific earthworks.

Of course, with the understanding that very unfavorable conditions (such as harder rock) could potentially lead to stopping or not pursuing the entire project, meaning the investment would be lost.

x0rzx0rz schrieb:

also countable as equity as well?

Also countable as what?
Those would be, if anything, own work contributions, not liquid funds.

Of course, excavation is not harmful. Why would it be?
It is either DIY work or the paid invoice for it is already accounted for as invested equity.

It sounds more like you want to skip a geotechnical site investigation by “just starting excavation and seeing what comes up”? If so, bad idea...

SoL schrieb:

But it sounds more like you want to save the cost of a geotechnical report by just "starting to dig and see what comes up"?
If so, bad idea...

No, quite the opposite. It was the recommendation of the structural engineer and geotechnical expert (after a report had already been prepared). Because a reliable investigation of the underlying rock cannot be guaranteed otherwise. Since there are several options for the location of the building structure, an "exploration" is the safest approach.

Hello, of course it is equity. But do you have an excavator and can operate it? Otherwise, renting an excavator means you can document what you spent. Your excavator work = 20 hours. I don’t know how many hours you will be digging around.