Only short-term project administration and management costs are included in a development budget. Ongoing project administration and management costs that occur once a project is in operation are included in the Operating Expenses tab of the template.

• Marketing and Management. Marketing and management costs are incurred during project construction and should include the costs of advertising the property and staffing. The development budget must account for these costs because they are incurred before the project begins operations.
  
  
• Operating Expenses. Operating expenses incurred during the construction period should be included here. These may include utility costs, maintenance, and insurance.
  
  
• Real Estate Taxes. Real estate taxes usually have to be paid on the property during the construction/marketing period. For a project whose construction period is longer than twelve months, two years' tax payments will have to be made. Consult with local taxing authorities to determine the basis on which the property will be assessed, based on preliminary development plans and on the anticipated starting and completion dates for construction. The annual estimated tax bill should then be prorated for the construction/marketing period.
  
  
• Insurance. While the contractor will carry builder's risk and liability insurance you will probably need to carry hazard insurance against damage to the building during construction and possibly insurance against theft and liability for personal injury or property damage. Consult with an insurance company for a quote.
  
  
• Use the Other Project Administration and Management Costs field to enter costs related to project administration and management that are not represented by the other items in this category. Enter a label (replacing the "Other Project Administration and Management Costs" text) and an amount. If you do not need to use this field, simply leave it blank.