Ensure you are crystal clear on what the builder is providing in the contract as to minimise the cost of variations during the project. If the build contract isn’t made clear, you could be caught out fronting the expense of the costly variations. An integral part of our service is to manage all build contracts to protect your profits.
2) Interest Rates & Holding Costs
Calculating interest repayments over the life of your development is of utmost importance. For a larger development which could take 12-24 months, you don’t want to be caught out borrowing too much money early, only to no longer be able to meet loan requirements when interest rate rise.
3) Over-Estimating End Sales
Large developments have a long life cycle that usually span 12-24 months. In an ever-changing property market, it can be hard to ascertain what it will be like when your project is completed. For this reason alone, it’s essential that the estimates on your end sales value are realistic and are comparable to what the market is willing to pay for your completed product. We work with leaders in the finance and real estate sectors to conduct in-depth feasibility studies so you can accurately measure your build cost and return on investment.
Mitigating these risks in a development project of any size is our area of expertise. We develop project schedules and clearly communicate it to all consultants, as well as manage any issues pertaining to legal, strategic or logistics. We follow up the project schedule by being your eyes and ears on the ground; we are constantly out on site to oversee the whole process on your behalf, ensuring quality, efficiency and timely delivery on multiple stages in the project’s life cycle.