Construction costs: Prepare a construction cost statement for the bank

Hello everyone,

Our house construction project is progressing slowly. We have already received a construction cost breakdown for the house from the architect, and initial financing offers are also already available, so that in a few days/weeks we will be able to finalize the construction financing. Currently, I am dealing with the topic of “construction costs” and how to best approach the construction cost breakdown. How should I proceed best here?

[*]How detailed do the construction costs have to be listed in the construction cost breakdown? For example, do costs for tiles have to be room-specific or is a general item “floor coverings” sufficient?
[*]Can measures covered by personal contribution be simply “estimated” based on a self-created calculation and listed under construction costs?
[*]I have a much more detailed construction cost breakdown for my own purposes, but I am not sure whether every single item needs to be listed in the construction cost document or if that might be too detailed for the bank?

I have attached a first draft of the construction cost planning here. I have currently assumed ancillary construction costs with a flat rate of €30,000; a more precise list will of course be submitted in the final draft (gas and electricity connection = €3,000, insurance = €750, ...). I have described the measures that are not considered value-increasing (such as kitchen, for example) all with the status “through equity.” This means that these are not to be financed.

What changes need to be made to use the construction cost document as a basis for construction financing? What suggestions for improvement are there?

Since this is my first construction cost draft, I would be very grateful for constructive feedback!

Thank you,
Mirco

The construction cost overview should be sufficient and is more than what is usually seen in construction cost overviews from many builders.

toxicmolotv hit the nail on the head. Very good breakdown of construction costs

Uff, that really surprises me. I thought there was more behind a construction cost statement... Well, if it’s that "simple," I will now wait for the final work of the architect and then take care of the final financing.

Hello Mirco,

Your construction cost breakdown is nicely detailed and from my point of view there is only one point where you should still work. Unfortunately, your current construction cost breakdown does not show the extent of your own contributions because no distinction is made between labor and materials. For your financing request, however, you should list your actual own contributions (labor) exactly so that the bank also recognizes this as "equity" and you have a better loan-to-value ratio for the financing. Ideally, your contractor/architect then confirms the own contributions with their signature. You are welcome to use my template attached for this.

Best regards, Andreas

I assume that the contracts have not yet been signed. Because the financing should be in place beforehand. I went to the bank with a construction cost breakdown from the developer and also added the construction costs for the outdoor facilities. Then the bank person looked at it and made some comments on certain points. For example, how expensive outdoor facilities and kitchens would be for this house and plot size. If he was missing anything, I provided it afterwards. That was it from the cost side. Regarding the proof of equity and future special repayments, which I wanted to have included in the contract, they were really picky and wanted all the evidence. The bank now knows more about me than I do myself.