Know what the land is really worth before you agree the deal.
Abnormal development costs can move land value by millions. Roxburgh Murray helps landowners and developers identify, define and cost abnormal works so negotiations are based on a realistic development position, not assumptions.
We can act for either the landowner or the developer in a transaction, but never both parties to the same deal.
The land value can change dramatically when the abnormal cost position changes.
Land negotiations often appear to be about two different views of what a site is worth. In reality, the gap can sit in the assumptions underneath the valuation - particularly the cost of making the site developable.
Ground conditions, access, drainage, utilities, remediation, earthworks, retaining structures and other site-specific requirements can have a significant effect on development viability and residual land value.
If those costs are overstated, the landowner may accept materially less than the site is worth. If they are understated, the developer may take on risk that only becomes visible after acquisition.
Typical abnormal cost areas can include:
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Site access, roads and junction works
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Earthworks, cut and fill, ground improvement and retaining solutions
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Drainage, attenuation and flood-related works
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Utilities diversions, reinforcement and new connections
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Demolition, remediation and contaminated land requirements
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Off-site infrastructure and enabling works
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Site-specific construction constraints that sit outside normal development costs
Roxburgh Murray brings Quantity Surveying, development costing and commercial judgement together to establish a clearer, evidence-led position before the deal is agreed.
Independent support for either the landowner or the developer.
The same abnormal cost can mean very different things depending on which side of the transaction you are on. Roxburgh Murray can support either party, subject to a clear conflict check before instruction.
For Landowners
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Test whether abnormal cost allowances are realistic and properly supported.
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Understand how those costs affect the residual value of the land.
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Challenge assumptions that may be reducing the proposed purchase price.
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Enter negotiations with an independent, evidence-based cost position.
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Protect land value without relying on a headline figure that cannot be substantiated.
For Developers
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Understand the realistic abnormal cost exposure before committing to a site.
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Test whether early allowances are sufficient for the actual development constraints.
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Build stronger cost information into acquisition and viability decisions.
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Reduce the risk of abnormal costs emerging after the land price has been agreed.
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Support land negotiations with a clear and defensible commercial basis.
Independence matters
Roxburgh Murray acts for either the landowner or the developer on a transaction, never both. The role is to give the instructing party an independent and commercially robust view of the abnormal cost position.
From early site information to a negotiation-ready cost position.
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Review of available site, planning, technical and development information
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Identification of abnormal development constraints and cost drivers
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Development of a clear abnormal works scope and design basis
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Measurement, pricing and cost planning of abnormal works
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Testing of assumptions, allowances and contingencies
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Assessment of how abnormal costs affect development viability and land value
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Clear reporting for owners, directors, development teams and advisers
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Commercial support during land value and acquisition negotiations
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Updating the abnormal cost position as better information becomes available
Turn a disputed assumption into a position that can be tested.
1. Understand the transaction
Establish what is being negotiated, what each party is assuming and where the material gap in value sits.
4. Cost the impact
Measure and cost the abnormal works and show what those costs mean for the development and land value position.
2. Review the site and constraints
Examine the information available and identify the abnormal items that could materially affect development cost.
5. Support the negotiation
Present the commercial reasoning clearly, test the opposing assumptions and help the client negotiate from an evidence-led position.
3. Define the abnormal scope
Create a clear basis for what actually needs to be allowed for, rather than relying on broad or unsupported allowances.
From a £2 million developer valuation to a £19 million land value.
A landowner and a major housing developer were a long way apart on the value of a development site.
The landowner believed the site was worth approximately £25 million. The developer maintained that, after allowing for the development position and abnormal costs, the land was worth only around £2 million.
Roxburgh Murray was instructed by the landowner to establish a stronger abnormal design and costing position and support the commercial negotiation.
By replacing competing assumptions with a more robust, evidence-led view of the abnormal cost position, the landowner was able to negotiate from a materially stronger basis.
£2m
Developer's initial valuation
£25m
Landowner's initial position
£19m
Land value secured
Commercial result: £19 million land value secured - £17 million above the developer's initial valuation.
Wider outcome: The negotiation moved away from two opposing headline values and towards a commercial position supported by clearer abnormal cost evidence.
When abnormal costs are driving the land value, they need to be understood before the deal is done.
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A landowner and developer are materially apart on site value
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Abnormal cost allowances appear high, unclear or insufficiently evidenced
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A developer is assessing a site before acquisition
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A landowner wants to understand whether proposed deductions from land value are reasonable
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Ground, infrastructure or servicing constraints are having a major effect on viability
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New technical information has changed the abnormal cost position
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A negotiation is approaching and the commercial assumptions need to be tested
Landowners and developers making high-value decisions.
Roxburgh Murray supports landowners, housing developers and commercial developers where the abnormal cost position can materially influence land value, acquisition strategy or development viability.
The service is particularly relevant where a site is complex, the value gap is significant or the development constraints need more detailed commercial testing before agreement.
Related services
Client-Side Quantity Surveying
Full-project cost management, procurement, valuation, variation review, reporting, contract administration and final account support for developers and project owners.
Negotiation & Relationship Protection
Commercial preparation and negotiation support when significant value is being discussed and the position needs to be presented clearly and robustly.
