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.