ᐅ What tasks need to be completed before signing the shell construction contract?
Created on: 5 Sep 2017 08:09
Z
Zaba12
Hello everyone,
From a financial planning perspective, I’ve been giving some thought to a few things and would like to hear your opinions.
Basic information:
1. The plot of land from the municipality (fully serviced) is financed and will be paid off by the end of the year. The municipality still needs to complete the servicing and carry out the land survey (paid by the municipality).
2. The architect has completed the design planning.
3. The initial phase is planned as an extended shell construction (i.e., groundwork, drainage, shell construction, roof).
4. After that, known contractors will handle the interior finishing.
Items 1-2 will be paid out of pocket. Items 3-4 will be covered by the house financing, which should be finalized at the beginning of January. Logically, there are a few items between steps 2 and 3.
In my view, the following points are those that would make the house financing ready for disbursement (so that the shell builder can start construction). I hope my assumptions are correct, since without house financing ready for disbursement, the shell construction cannot even begin ;-) .
- Building survey, 1000€
- Building permit via exemption, 1000€
- Additional payment for floor area, 300€
- Second notary fees (new land registry fees due to house financing), 2500€ (essential for the loan in my opinion, because without land registration for the financing bank, there is no money)
- Builder’s liability insurance, paid
- Construction all-risk insurance / builders’ risk insurance, 400€
- Soil report, 1000€
- Energy consultation (probably not the full amount in the first step), 3500€
- Provision of construction electricity/water, 700€
Based on my estimate, I would be looking at around 10,000–11,000€ to pay out of pocket before the next invoices can be paid through the house financing, is that correct?
Are there any points missing, or are my estimates too low?
From a financial planning perspective, I’ve been giving some thought to a few things and would like to hear your opinions.
Basic information:
1. The plot of land from the municipality (fully serviced) is financed and will be paid off by the end of the year. The municipality still needs to complete the servicing and carry out the land survey (paid by the municipality).
2. The architect has completed the design planning.
3. The initial phase is planned as an extended shell construction (i.e., groundwork, drainage, shell construction, roof).
4. After that, known contractors will handle the interior finishing.
Items 1-2 will be paid out of pocket. Items 3-4 will be covered by the house financing, which should be finalized at the beginning of January. Logically, there are a few items between steps 2 and 3.
In my view, the following points are those that would make the house financing ready for disbursement (so that the shell builder can start construction). I hope my assumptions are correct, since without house financing ready for disbursement, the shell construction cannot even begin ;-) .
- Building survey, 1000€
- Building permit via exemption, 1000€
- Additional payment for floor area, 300€
- Second notary fees (new land registry fees due to house financing), 2500€ (essential for the loan in my opinion, because without land registration for the financing bank, there is no money)
- Builder’s liability insurance, paid
- Construction all-risk insurance / builders’ risk insurance, 400€
- Soil report, 1000€
- Energy consultation (probably not the full amount in the first step), 3500€
- Provision of construction electricity/water, 700€
Based on my estimate, I would be looking at around 10,000–11,000€ to pay out of pocket before the next invoices can be paid through the house financing, is that correct?
Are there any points missing, or are my estimates too low?
Okay, understood.
The infrastructure costs were already covered by us when purchasing the plot, as part of the development charges for the building area (i.e., road, water, sewage, electricity). Interestingly, according to the building authority, we can still expect an additional charge (for water, sewage, and electricity) because, based on the "development formula," only 153m² (1646 sq ft) of floor area was considered at the time of purchase for the development fee (electricity €0.35/m² and water/sewage €12.05/m²).
The utility connections, basically from the property boundary (water, electricity, telephone, no gas planned), are still expected to be our responsibility, of course.
I took note of this information about six weeks before the scheduled date. Thanks.
Since I haven’t heard any objections, apart from the costs, my outline seems to be reasonable from a planning perspective.
If you think of anything else, just let me know. I’m always grateful for information.
The infrastructure costs were already covered by us when purchasing the plot, as part of the development charges for the building area (i.e., road, water, sewage, electricity). Interestingly, according to the building authority, we can still expect an additional charge (for water, sewage, and electricity) because, based on the "development formula," only 153m² (1646 sq ft) of floor area was considered at the time of purchase for the development fee (electricity €0.35/m² and water/sewage €12.05/m²).
The utility connections, basically from the property boundary (water, electricity, telephone, no gas planned), are still expected to be our responsibility, of course.
I took note of this information about six weeks before the scheduled date. Thanks.
Since I haven’t heard any objections, apart from the costs, my outline seems to be reasonable from a planning perspective.
If you think of anything else, just let me know. I’m always grateful for information.
@ypg
...somehow I'm a bit stuck right now. And good that you bring it up :-)
The 150€/m² (approximately $160 per square yard) land cost is broken down as follows:
1) Land purchase price 56.54€ per m² (approximately $5.25 per square foot)
2) Development fee buyout 87.95€ per m² (approximately $8.17 per square foot)
3) Installation of water supply and wastewater systems 5.51€ per m² (approximately $0.51 per square foot)
Then there are the costs for house utility connections at around 6000€ (approximately $6600) without gas.
Now there is also an application fee for construction water and temporary power at 2000€ (approximately $2200).
Is there anything missing?
...somehow I'm a bit stuck right now. And good that you bring it up :-)
The 150€/m² (approximately $160 per square yard) land cost is broken down as follows:
1) Land purchase price 56.54€ per m² (approximately $5.25 per square foot)
2) Development fee buyout 87.95€ per m² (approximately $8.17 per square foot)
3) Installation of water supply and wastewater systems 5.51€ per m² (approximately $0.51 per square foot)
Then there are the costs for house utility connections at around 6000€ (approximately $6600) without gas.
Now there is also an application fee for construction water and temporary power at 2000€ (approximately $2200).
Is there anything missing?
No. This varies locally. Temporary construction electricity and water for me were 400 kWh (400 kWh) for electricity and 200 liters (200 liters) for water, with some basic fees included; otherwise, it was based on consumption. Yvonne has a different view, suggesting that for your 150 m² (1,615 sq ft) it was already included in the land costs, which is not ideal because it means it is subject to property transfer tax, whereas our 1,500 unit development fee was billed separately and was not subject to this tax. Karsten
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