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.
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.
HilfeHilfe schrieb:
Hello, of course it’s equity. But do you have an excavator and know how to 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’ll be working with the excavator. The work will be done by a company; only a compact excavator will do the job 😉
This counts as equity. Simply provide the invoice from the civil engineer. We finalized our financing only after the foundation slab was completed. All our advance payments (land purchase, earthworks, incidental construction costs, initial progress payments to the general contractor) were paid from own funds and were taken into account for the loan. We also had invoices for everything.