Build Cost per Square Foot is the average cost of physical construction, expressed per square foot of Gross Internal Area (GIA), in a UK property development project. This key metric is widely used within UK property development finance to benchmark build efficiency, support accurate budget planning, and evaluate project feasibility. It typically includes all direct labour, materials, and contractor expenses—excluding land acquisition and professional fees. For SME developers, understanding this figure is crucial in managing costs, negotiating funding, and comparing performance against similar schemes, ensuring sound financial decisions throughout a development.
This sits beneath Hard Costs, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Price per m² (Achieved), as both are closely related measures used to assess similar aspects of performance or risk.
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