Hello! In this article, we're going to deep-dive into how to add build costs in your Aprao appraisal or feasibility.
The first thing you'll see when we open the Build costs tab is Preliminary costs. This is your chance to capture anything in your build costs sections that are related to pre-development. This is usually things like getting the site set up, security, hoarding or the site office. You can customise these within your templates too, so every time you can start with a list of assumed costs. You can see an example of the preliminary costs below.
Adding a Phase
When you click on "Add a Phase" under the last section, you'll be able to add your main build phase. Here you will be able to bring everything together under one build cost. This is ideal if you are doing a residual valuation. If you want to go more granular, you can do so here by adding each different tenure, building or block - it's completely flexible as each one of those can become its own build phase. If you plan to build a cashflow from it and if the timeline of each cost is different, you are advised to separate them into different phases. Then, you can add the description of the phase, the Net (NIA) and Gross (GIA) and % of NIA.
Add your build costs line-by-line
You can also add as many line items of costs as you would like, and be as detailed or high level as you need. To add additional lines of build costs, click "Add Build Cost" and you can input as many as required.
You can always set a contingency in the Build Costs section, either as a percentage or as an amount in your currency, as you can see in the example below. This can help you keep on track of the cost limits.
The next phase
When you next go to add another phase to the Build Costs, you'll notice that the remaining assignable area has been updated. This means that every time you apply some square footage, Aprao automatically updates the remaining assignable area to keep you on track with your costs!
By clicking "Apply" you'll be able to bring this remaining area into your NIA and GIA for this next phase of the build costs.
Bringing it all together
Once you're done adding all the phases and costs you want, you can minimise each tab and you'll notice that you will now have preliminary costs, each phase of the build you have inputted neatly ordered, and a total build cost now populated in the summary.
You will see a total cost including the contingency and a total cost excluding the contingency clearly in the summary. You can go back and adjust your cost information at any time to help you keep on budget with your project.
Hopefully, this answered any questions you might have on adding build costs into your Aprao appraisal but if you have any specific questions, our team are always happy to help - please feel free to post in our forum or email firstname.lastname@example.org.