Resource

12 things to check before IC.

A short, opinionated health check for a residential development feasibility model. Most of the things ICs ask about live on this list.

The 12 checks

  1. GRV is supported. Every per-unit price has a recent comparable sale behind it.
  2. Net realisation is correct. Selling costs and GST are netted off GRV before profit is calculated.
  3. Construction rate is current. Backed by a current QS estimate or your last similar build.
  4. Contingency is included. 5–7.5% on construction at minimum.
  5. Statutory contributions are right. Pulled from the current schedule, not last year's.
  6. Finance costs include the full program. Not just the construction loan period.
  7. DM fee is treated consistently. Either in TDC or out — be explicit.
  8. Profit on cost and margin both stated. Both clear hurdles, not just one.
  9. Cashflow is monthly. Annual is too coarse for peak debt and IRR.
  10. Peak debt fits the facility. With headroom — not at the limit.
  11. Equity IRR is annualised. Not a confused profit-on-equity ratio.
  12. Sensitivities are run. ±5% on revenue, ±5% on cost, +100bps on rate, 3-month delay.

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