A budget reserve set aside to cover unforeseen cost overruns.
Related terms
- Density
The intensity of development on a site, e.g.
- Developer profit
The return a developer requires for taking on development risk, often a margin on cost or GDV.
- Efficiency ratio
Net usable or leasable area as a percentage of gross floor area.
- Entitlement
The legal approvals and permissions that establish what can be built on a site.
- Feasibility study
An assessment of whether a proposed development is viable in market, technical, and financial terms.
- Floor area ratio (FAR)
The ratio of a building total floor area to the size of its plot; a key planning control.
- Gross floor area (GFA)
The total built floor area of a building measured to the outside of external walls.
- Hard costs
The direct construction costs of a development - materials and labour.