Property development is a complex investment transaction, that requires many moving parts to come together, at just the right time; think buying the site, development approvals, finance, construction, sales and leasing, and doing it in as short amount of time as possible. Within each of these segments sits several consultants, each having their own speciality. By bringing each consultant together with the next, both time and money is saved.
A well-resourced Development Manager will bring a strong network of consultants to the project, and will efficiently manage the team to deliver your development, on time and budget.
A Development Manager should bring significantly more value to the project than what they are charging. This can be through a number of critical components;
• Negotiating contract terms with a builder; liquidated damages, defect periods, latent conditions, novated contracts, and who is responsible for what.
• Manage a development; responding to Requests for Information, coordinating consultants, solving problems, reviewing claims and ultimately managing time, cost and quality.
• Understanding complex construction drawings and conceptualising a drawing on a piece of paper into what it will look like on site, how it will or won’t function. How will a person living in the dwelling use a certain function or feature and will the market respond positively to the development.
Your team should be able to clearly outline their fee structure, their scope of work and anything that is not included for the development, meaning, what will you, as the investor have to look after. For any development, lost time through a gap in someone’s scope can cause a significant delay, ultimately costing you money and eating into your profit.
A project is more efficient when there is one point of contact, one decision maker. This allows each part of the team to do their job, and not worry about what else they should be doing for the project to be a success.
If you have limited time away from work to enjoy yourself, is it best to devote that to site visits, spending hours looking over drawings, finding reliable builders or consultants and fighting to deliver a successful project? We don't think so!