Cost completion analysis

Cost completion analyses are used primarily for development and construction projects that have been stalled or partially completed. Since the economic downturn, partially completed projects have become more prolific. If a development or construction project is stopped short of completion there is a high probability that expensive complications will impact the project by the time work is started again. Permits expire, land use codes change and materials deteriorate; each of these scenarios can have a negative impact on the value of the project.

Understanding what the potential costs are to complete a project is critical information for owners as well as potential purchasers.  BP² Squared has conducted cost completion analysis for financial institutions as well as investors. Once the actual cost of completion has been determined, the price of a subject property can be appropriately adjusted for purchase and/or sale.