Strategy : Costs

plan : execution : timeline : costs : success factors

Major cost drivers

Many variables influence and drive the cost of development. The major cost drivers that we have identified are:

• The size of the linked, adjacent, covenanted and restored bush area
• Cost of bare land
• Cost of revegetation
• Roads, fencing and building site preparation
• Plot services: Stormwater, water, sewage, electricity, phone
• Engineering and project management
• Support services: legal, planning, accounting
• Number of sites in a development

Estimated development cost

A detailed preliminary development cost estimate has been prepared. This is available for presentation to bona-fide investors who confirm the seriousness of their interest in a formal manner. These formalities would include entering into a confidentiality agreement prior to the presentation. The estimate is spreadsheet based and variable driven. This enables the sensitivity of the development costs to any variable to be assessed quickly. It also allows rapid update of overall development cost as revised cost information becomes available. The spreadsheet will allow a probabalistic model of development costs to be developed, should this be required.

The timing of development costs follow a typical S-curve as indicated here.

This pie chart shows the estimated distribution of development costs at the end of Phase 6.