How to estimate land development costs

Do you know the paramount challenge for contractors is determining accurate estimates for land development costs? Where every other construction thing is essential to evaluate. Same way, calculating land development costs is super important! This whole process includes analyzing various factors involved to make sure you are not running out of budget. That is why we have discussed some factors affecting land development expenses. Moreover, we have given some rough estimates so that you can have an idea of evaluating your land project cost.

The construction cost estimation results must be spot-on to prevent construction delays and save you thousands of dollars! Do you know when it is necessary to calculate the land development cost? Land development costs must be deeply analyzed in the initial phases of the project. Because in the starting phases, contractors and managers plan the whole project from its management to budget discussions. You must carefully evaluate:

• Site acquisition 

• Preparation 

• Permitting

• Utility installation

• Erosion control

• Landscaping

• Professional fees​ 

A new or inexperienced contractor must never leave their projects whether it is residential, commercial, or industrial, on guesses. Always seek professional help to accurately quantify and estimate all these components. Currently, SMA Estimating LLC is the top estimating company working all over the United States. You can contact them and trust their process to get 100% accurate estimates. 

Average Land Development Costs

1. Property Attainment Cost 

Do you know the very first massive investment is property attainment? A large portion of your budget is invested in buying the land. The cost depends on the size and location of the land. Moreover, never forget to add the cost of

1. Cleaning the land

2. Grading

3. Excavation

This cost can typically fall between thousands to ten thousand dollars. Let us show you what you can expect!

• For cleaning and grading, you can expect between $3,000 and $6,000 in 2024. If the site has rugged terrain then the cost can be higher than this value.

• For the excavation process, the cost is different depending on soil type. Remember, these costs can be different for your projects, these are just rough cost estimates.

2. Sanction Expenses

If you are planning to start a development project, you must know that there are sanction and fee charges for every type of project. Authorities charge for building permits, inspection fees, and impact fees.

The expected land development costs for:

• Building Permits: $300 - $5,000

• Impact Fees: $5,000 - $25,000 

These figures depend on the size and location of your projects.

3. Utilities Installation Cost

While working on land development projects, do not forget to add utilities installation costs in your estimates. Utilities like water, sewer, electricity, and gas. The cost is increased if your installation is complex. Let’s see how much it can cost you

• Water and Sewer Connection: $1,100 - $36,000

• Electrical Connection: $1,500 - $5,500

• Well and Septic System: $5,900 - $22,000 

4. Erosion and Sediment Control

Erosion control is necessary to prevent soil erosion in land development. Why this step is so crucial? So that the environment is protected and water pollution is prevented. The most common expenses are silt fences, erosion control matting, and other measures to protect the site. Its cost is based on the size of the site and the requirements of the clients.

5. Landscaping and Site Improvements

In landscape development costs, you must also expect the expenses of planting trees, grass, and other vegetation. If the client wants to add walkways, patios, and driveways, the overall cost will be increased.

• Landscaping: $3,000 - $20,000

• Driveway Paving: $50 - $500 per driveway

6. Professional Fees

If you are thinking of hiring engineers or architects then add the cost of their fees in your estimates. These fees depend on how complicated your job is! It is expected the surveying cost can start from $300 and increase up to $3,500. Additionally, the fees of engineers are also higher than $400.

Extra Tips to Guarantee Accurate Land Development Estimates!

• Do you know zoning laws and building codes can increase the cost? Yes! So make sure that you check these factors to save your bucks!

• Every construction-related project is associated with risks and unexpected situations. This means being ready for unforeseen costs like soil issues, bad weather, or any changes in the projects.

• You can get multiple quotes from various suppliers and compare the expenses at the end. Choose the most suitable one and try to avail discounts and offers to save your budget.

Final Words!

We have discussed all these factors in this guide so you get an idea of how you can estimate land development costs. So consider all these factors and research to generate a realistic evaluation, closest to the budget. Always remember one thing, a well-planned construction project and budget never fail you! You can successfully complete your project within time and budget.