Loan Estimate and BOQ Preparation for Bank Loans in Sri Lanka - 0702 222 111

Kedalla Design and Construction (pvt) Ltd

No:247 1/3
Peradeniya Road, Kandy (20000)
Sri Lanka

We Prepare Construction Estimates / BOQ for Mortgage Loan

The mortgage Loan Estimate or Bill of Quantity is the beginning of the mortgage loan process. It is the form that is going to provide you with the information you need in order to understand your loan. The Loan estimate will give you important details such as, how much you need for closing, an estimate of your payment amount, the insurance costs and other closing cost details.

We provide A Bill of Quantity acceptable to the bank for the Proposed New Construction, Renovation, Remodeling or Extension of the house.

Help you estimate your home value Get a quick and easy estimate of the real price of your property

Do you need help with getting approved a building plans?

Under the hassle free documentation handling option, our customers are offered a special service of obtaining clearance documents from local authorities via an agent. This service enables customers save their valuable time spent in government offices trying to get clearance documents.

Give us call on 0702 222 111 or visit our office and let us know what you’re planning to build.

Kedalla estimates help you determine the costs that can be expected when buying a home, remodeling a home, or starting a new project

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We Prepare Construction Estimates / BOQ for Personal Loan

A personal loan is an unsecured loan which can be used for any purpose. It has no oversight and funds will be provided in full to the borrower. If you have a good salary and working in a good company with a good credit score you can get higher loan amounts.

A Home Construction Personal Loan is a loan given exclusively for the purpose of constructing a house on a piece of land already owned by the borrower.

House construction cost, Home building cost, Price to build a house in sri lanka

Do you need a BOQ / Estimate for a Home construction personal loan?

We preparing BOQ / Estimates for bank loans / housing loans

If you have a question about your loan estimate contact Kedalla for more info.

At Kedalla Architectural Designs we pride ourselves in remaining people-oriented. We help our customers get what they want, one on one. We work with our customers individually to match our services to their needs.

Know the cost of a square foot to build a house in sri lanka

Work out your repayments & calculate your Budget / Loan Value for House Construction

The Loan Value is the total amount of money that a bank will be lending to you.  However the loan amount will depend on your repayment capacity.

The loan amount is also decided based on the BOQ value where you can obtain loans up to 100% of the BOQ value when the customer owns the land and in other cases up to 50-75% of the BOQ value or the valuation of the property

House construction cost per square meter in sri lanka
Qualified professionals who advise and design you a beautiful house any location in Sri Lanka, exactly to suite your taste and the budget

A loan payment calculator

When borrowing money, the required monthly payments are typically a primary concern. Is the loan affordable, given your income and other monthly expenses? If you’re not sure how much you’ll need to pay, a loan payment calculator—or a bit of math—can help you get the answers you need.

Calculators are great for getting a quick answer. They also make it easy to do what-if calculations, which help you truly understand your loan and how your decisions affect your finances. For example, you can compare what happens if you borrow slightly less, or what happens when you get a lower interest rate.

Different Loans, Different Calculations

Before you start calculating payments, you need to know what type of loan you’re using. You use a different calculation (or calculator) for different loans.

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Knowledgable and experienced staff ready to help you build the home Budget estimates perspectives layouts and house designs

How Much House Can I Afford?

1. Begin your budget by figuring out how much you (and your partner or co-buyer, if applicable) earn each month. Include all revenue streams, from alimony and investment profits to rental earnings.

2. Next, list housing costs and your total down payment. Include property tax, homeowner’s insurance costs, estimated mortgage interest rate and the loan terms (or how long you want to pay off your mortgage). The popular choice is 15 years, but some people opt for shorter loans.

3. Lastly, tally up your expenses. This is all the money that goes out on a monthly basis. Be accurate about how much you spend, as this will dictate what you can reasonably afford.

Input these numbers into loan calculator to get a clear idea of your homebuying or home construction budget.

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Making estimates for buildings Responsible for the design and construction of houses in Sri Lanka

What is a down payment on a home?

The down payment is a portion of the total sales price of your home, which you give to the home’s seller. The rest of the payment to the seller comes from your mortgage. Down payments are expressed as percentages. A down payment of at least 20-30 percent lets you avoid private mortgage insurance, or PMI.

To explain how bankers and real estate agents talk about down payments, let’s say you buy a house for Rs100,000:

  • A 9 percent down payment means that you pay the seller Rs 9,000 and you borrow Rs 91,000.
  • With a 30 percent down payment, you would pay the seller Rs 30,000 and you would borrow Rs 70,000.

The money for a down payment can come from: Your own savings, The money you get when you sell a house, Gifts and grants from family, employers and nonprofits

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Housing Loan - Variable home loan rates & Fixed home loan rates

Whether you are buying your first home, re-financing, renovating your property or purchasing an investment property, banks will help you make the right choice and match you with a home loan that best meets your needs.

Variable home loan rates give you great flexibility to manage your loan, whilst fixed home loan rates can give you peace of mind with your repayments.

Design a new house on a tight budget

Variable interest rate is an interest rate on a loan or security that fluctuates over time

Variable Interest Rate Loans

A variable interest rate (sometimes called an “adjustable” or a “floating” rate) is an interest rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index that changes periodically.

A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest rates change. As a result, your payments will vary as well (as long as your payments are blended with principal and interest).

The obvious advantage of a variable interest rate is that if the underlying interest rate or index declines, the borrower’s interest payments also fall. Conversely, if the underlying index rises, interest payments increase. Unlike variable interest rates, fixed interest rates do not fluctuate over its term.

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Fixed interest rate loan allows the borrower to accurately predict their future payments

Fixed Interest Rate Loans

Fixed interest rate loans are loans in which the interest rate charged on the loan will remain fixed for that loan's entire term, no matter what market interest rates do. This will result in your payments being the same over the entire term. Whether a fixed-rate loan is better for you will depend on the interest rate environment when the loan is taken out and on the duration of the loan.

When a loan is fixed for its entire term, it remains at the then-prevailing market interest rate, plus or minus a spread that is unique to the borrower. Generally speaking, if interest rates are relatively low, but are about to increase, then it will be better to lock in your loan at that fixed rate. On the other hand, if interest rates are on the decline, then it would be better to have a variable rate loan. As interest rates fall, so will the interest rate on your loan.

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Find out the benefits of fixed and variable rate mortgages

Should you take out a fixed or a variable rate mortgage?

One of the biggest decisions you face when choosing a mortgage is whether you should go for a fixed or variable rate. On the one hand, it’s hard to argue with the certainty and stability of a fixed rate. But then again, no-one wants to give more money to their mortgage lender than they really have to. Right?

However, historical trends aren't necessarily indicative of future performance. The borrower must also consider the amortization period of a loan. The longer the amortization period of a loan, the greater the impact a change in interest rates will have on your payments.

Therefore, adjustable-rate mortgages (ARM) are beneficial for a borrower in a decreasing interest rate environment, but when interest rates rise, then mortgage payments will rise sharply.

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Does the bank need a signed contract for house construction loan?

Trying to get approved for a construction loan when building a home is a classic example of putting the cart before the horse: you need to provide the bank with a contract in order to get approved for finance but what happens if your application is declined? Well, you’re left up the proverbial creek.

We recommend that you don’t sign a building contract unless it has a finance clause which allows you (at least) 3 weeks to organise your construction loan.

If the contract doesn’t have a clause, you can either ask for one to be included or simply get a draft copy a contract to provide to the bank. Most banks will accept this and, once you’re approved, you can then sign the final contract.

Now it's time to settle into your new home

BOQ An itemized list of materials, parts, and labor with their costs required to construct, maintain, or repair a specific structure

What is a bill of quantities / (BOQ)?

A bill of quantities (commonly known as BOQ) is a document prepared by a quantity surveyor or cost consultant to define the quality and quantity of works required to be carried out by the main contractor to complete a project.A bill of quantities also provides the main contractor with measured quantities of works as identified on the project drawings and specification.

The Bill of Quantities has the following uses:

  • 1. Cost planning in the pre contract phase of the project
  • 2. Tendering - An unpriced Bill of Quantities is sent out to bidders to price the work.

It is important that a BOQ is prepared to a standard methodology recognised by everyone involved in the project to avoid any misunderstandings or ambiguities. A BOQ is also a valuable document during the process and settlement of any dispute resolution.

Preparation of detailed estimate can do under 2 phases such as work out with quantities of different works and calculate the cost of each work

Estimates - Prepared on various stages

Estimate is a rough calculation on quantities of various works & their expenditure, done by the experts of the relevant field before the execution of a project. Accuracy of an estimate depends on the experience, ability and judgement power of the estimator.

Anyone who willing to engage them on constructing something, they’ll surely bother about the quality & money/cost. To feel free from them a solution called “estimate / estimation” was derived…!

An estimator should be very careful of the quantity takeoff, using the given documents such as drawings, specifications and other documents regarding the project. Other than these, every estimate should prepare with the consideration of other 2 factors, which influence a project namely, direct & indirect cost. (Direct cost – cost of materials, equipment, labour & subcontracted cost, Indirect cost – overheads, contingency).

Cost estimate is predicted expenditure of a project which is generally prepared before the project is taken up

Detailed estimates

Detail estimate is prepared with the help of complete set of contract documents. The preparation of detailed estimate can do under 2 phases such as work out with quantities of different works and calculate the cost of each work.

A detailed estimate should have documents such as report, specifications, drawings/plans, design charts and schedule of rates. Factors such as, material quantity, transportation of materials, location of site, labour charges, cost of equipment (commonly allowed:- 2% of the estimated cost), overhead charges (commonly allowed:- 2% of the estimated cost), contingencies & unforeseen (commonly allowed:- 4% of the estimated cost) items are needed to consider well while preparing the detailed estimate.

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What construction loan documents do I need to provide? BOQ, Estimates, etc...

First things first: you’ll need to get approved for your construction loan.

Apart from looking at your financial situation including your payslips, last 3-6 months savings, your most recent tax return, and your deposit size, you’ll most probably need to provide your bank with the following:

  • Approved Building plans - The building plans have to be council-approved at this point. It just gives the valuer an idea of the nature of the property that you’re building
  • Quotes for additional work - Just in case you haven’t read the Building Estimate / BOQ fine print carefully, not everything is included in the construction so it’s important to provide quotes for other additional works upfront. These additional works include: Swimming pools, Sheds, Landscaping and retaining walls, Driveways, etc...
  • Proof of identity
  • Employment details
  • Financial details such as income, assets, expenses and liabilities.

Approximate or Preliminary Estimate. Plinth Area Estimate. Cubical Content Estimate. Detailed Estimate. Revised Estimate

Type of Estimates

Approximate Estimates - It is also called budget, preliminary estimate. This type of estimate is prepared in the initial stage of a project. To give a clear idea to the owner (client) about the amount of cost needed for the project and to get the approval from necessary sanctioning bodies (eg: from banks to get loan).

Plinth Area Estimates - Plinth area estimate can be achieved by multiplying the values of plinth length, plinth width & plinth area rate. Here the plinth area is referred as, external plinth area of the building at floor level.

Cubic Content Estimates - This type of estimate done by multiplying the volume of the building by the unit cubic rate achieved from the previously (also recent) estimate. This type of estimate is a little bit more accurate than above mentioned methods and mostly suitable for multi storied buildings.

Supplementary Estimate. Annual Repair of Annual Maintenance Estimate. Extension and Improvement Estimate

Basic things you should know about Bill Of Quantity (BOQ)

When it comes to commercial management in construction industry, Bill of Quantities (BOQ) is the term which brings attention of every construction professionals and stakeholders.

Generally BOQ is in tabular form which contents description, unit, quantity, rate & amount in different columns. BOQ shall be used in every phase (pre-contract & post-contract) of the project but need of BOQ differs based on different contract agreements & project.Major parts of BOQ can be varied according to the project size as well the practices. Generally it has measured works, Preliminaries & Provisional sums. The contract sum would be addition of these three items.

It should be understood by every construction professional to deliver a quality and expected product to client. In other words to provide value for money.

In order to determine the rate of a particular item, the factors affecting the rate of that item are studied carefully

Analysis of BOQ rates

In order to provide a correct and reasonable rate per unit for a particular item, a detailed surveyed called an "Analysis of rate" should be conducted on costs of materials, labour and equipment as required for the unit following its specification. The rate per unit of an item consists of the following:

  • Quantity of materials and their cost
  • Labour cost
  • Cost of equipment, tools or plant
  • Overhead or establishment charges
  • Profit

For such items of work for which it is difficult to prepare an analysis of rate, a lump sum (L.S.) rate should be provided in the estimate.

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We welcome all opportunity for house designing, preparing BOQ, etc.. no matter the scope; always ready to exceed expectation

Read detailed, verified, client reviews about Kedalla Architects

Read hundreds of customer reviews for the exclusive house plan provider in sri lanka

"I am very pleased with my house plan. Eng.Amila Perera arrived on time and in perfect condition. My builder was very impressed with the House plan. The features are like living in a big mansion but on a smaller scale. This is a dream home! I highly recommend the Kedalla House Designers. The customer service representatives were very friendly and knowledgeable and answered all my questions before I received the plans. Thanks for your advice, guidance and support"

Mr. A.K Janith Rangana


Ceylon Electricity Board

New Town, Rathnapura

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