Gross Development Cost (GDC) meaning

Gross Development Cost (GDC) describes the aggregate of all costs required to deliver a property development from land acquisition to practical completion and disposal. It is commercial shorthand (not defined in legislation or case law) and is commonly specified in development appraisals, loan agreements, forward funding arrangements and development agreements. GDC typically includes: land/acquisition price and taxes (SDLT/LBTT/LTT or Irish stamp duty), due diligence and legal costs, planning and statutory fees, planning obligations and development contributions (England & Wales: section 106 and CIL; Scotland: section 75; Northern Ireland: section 76; Ireland: section 48/49), site investigation, abnormal/enabling works (e.g. contamination remediation, piling, utilities diversions), construction and fit‑out, professional fees (design, project management, monitoring), insurances, warranties, marketing and sales/leasing costs, finance costs (interest, arrangement/commitment fees, monitoring, hedging), contingencies and, where relevant, holding costs. Irrecoverable VAT is usually included; recoverable VAT is usually excluded. Developer’s profit is normally excluded. Usage is broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, though tax and planning contribution terminology vary. The defined GDC in a contract governs loan‑to‑cost and profit‑on‑cost metrics, cost‑to‑complete tests, cost overrun support and waterfall calculations. “Total Development Cost (TDC)” is sometimes used synonymously; always check the operative definition.