Urbanova — Construction Cost Plan & Procurement Strategy
The construction cost plan and the procurement strategy underpinning Urbanova's development programme.
Section 12 · Business Plan
Construction Cost Plan & Procurement Strategy
The construction cost plan and the procurement strategy underpinning Urbanova’s development programme.
| Cost element | R per unit (blended) | Share | Basis / control |
|---|---|---|---|
| Land (attributable) | 62,000 | 13% | Secured at rezoning option stage; walk-away discipline in Section 12A |
| Bulk services & infrastructure | 44,000 | 9% | R750m infrastructure allocation; recovered partially via UDZ allowance |
| Construction (shell & core) | 238,000 | 51% | Fixed-price framework EPC panel, ≥70% of value |
| Finishes & fit-out | 58,000 | 12% | Central procurement catalogue; national supplier framework |
| Professional fees | 26,000 | 6% | Capped at 5.5% of construction cost across the panel |
| Contingency & escalation | 42,000 | 9% | 6% contingency + CPI-linked escalation provision |
| Total all-in | 470,000 | 100% | Against R425k–R520k range by typology and metro |
Procurement runs through a framework panel of five to seven
pre-qualified contractors bidding precinct packages of 400–800 units,
large enough for programme pricing, small enough that no single
contractor failure strands more than one precinct. A modular/light-steel
pilot of 500 units in Phase 2 tests a 20–30% cycle-time reduction; it is
treated strictly as upside and no modular benefit is priced into the
base case. Escalation risk above the provision is shared 50/50 with
contractors up to 3%, borne by contractors beyond, the inverse of the
conventional allocation, purchasable because of programme volume.
The R470k blended all-in cost sits at the achievable-but-disciplined end of the observable range:
recent affordable-housing deliveries in Gauteng report R420k–R560k
all-in depending on land basis and parking ratios. Two line items carry
the real risk: bulk-services contributions (municipal-dependent,
node-specific) and escalation in a constrained contractor market once
the programme reaches 3,000+ units per annum, the same capacity
constraint flagged in the Section 7 execution-pace callout.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Urbanova Living Developments (Pty) Ltd.