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EXPERIENCE IS ESSENTIAL


Like many investment decision people make, engaging a professional in that field is critical to the success of the investment. Property development is no different. Working with professionals that can find the true potential of your development project is critical to optimise your return on investment.

Every property development project is unique, and your Development Manager will consider an individual approach, looking at characteristics, expectations and strategies and ensure that a project is delivered on time, budget and to a quality that is expected in today’s market.

What can cause delays to a project?

Depending on the size of the project, the most common stage of a project that can be delayed is seeking the relevant approvals from governing bodies, usually the City or Council. For new developments, a Development Application is lodged with the City for their review and approvals. There are a number of variables that need to be negotiated with new designs or amendments completed and relodged.

Once a project has been granted Development Approval, and the finance strategy is confirmed, getting a project to site can be a frustrating and drawn out process. Together with the finance application and approval, there are a number of steps that can be completed such as Water Corporation and Western Power headworks, working through pre-start colour selections, and running through final contract negotiations with the builder. If relevant, demolition of any existing structures on site can also take place at this time. By undertaking these items, it provides potential to reduce the project timeframes, thereby increasing project profitability.

What are the risks?

Property development is inherently risky, however when compared to leaving cash in a high interest savings account for example, the exposure to higher returns generally outweighs those risks. To counter the additional risk, a number of strategies should be employed, ensuring a project has sufficient protection where available. An experienced project manager and development manager can often pre-empt problems, reducing delays, cost blow outs or relationship breakdowns within the project.

What are the costs?

One of the most common questions asked by any client is “how much does it cost?”. This is a difficult question to answer! In order to establish the ideal development strategy, it is important to understand what a client wants to achieve from their development, their risk profile, and their long term financial goals.

The three main deliverables for any project are; Time, Cost and Quality. Achieving all three generally results in a successful project, however it is not easy. These factors can impact the viability of a project, and it is critical to find the right balance between cost, time and quality. This ensures that the site is not over-capitalised, however is still appealing to a potential buyer or the rental market. We will go into further detail on these three deliverables in a future blog. Ultimately, the project delivery and product quality will dictate the financial success of the project.

How can PDM help you?

Precision Development Management are Perth’s development management specialists, providing tailored solutions to deliver returns to buyers and their developments. Our team provide a highly personalised and engaging service to produce innovative and quality developments, managing your project from conception to completion. To speak to one of our team, or to find out more about our services, contact us at development@precisiondm.com.au