Understanding property talk!

We understand that it takes a long time to get your head around what all the aspects of building, so we have outlined some of them below to help guide aspiring property developers - like you - through the intricate world of development projects! Whether you're considering your first venture or looking to refine your approach, understanding the key stages and terminology is essential for success. At 6PM Project Management, we specialize in navigating these complexities to ensure seamless project execution. Join us as we demystify crucial topics like site analysis, builder selection, and project settlement, empowering you to embark on your development journey with confidence.

• Site Analysis: This involves evaluating the physical characteristics of a site, including its topography, soil quality, environmental considerations and infrastructure accessibility. Site analysis helps in determining the suitability of the site for the intended development.

• Project Feasibility: This step involves assessing whether the proposed project is financially and practically viable. It includes considerations such as market demand, potential profitability, resource availability and regulatory constraints.

• Plans & Designs: Once feasibility is established, detailed plans and designs are created. This includes architectural drawings, engineering plans, landscaping designs, and other technical specifications required for construction.

• Town Planning & Permits: Before construction can begin, approval from local authorities is usually required. This involves obtaining zoning approvals, building permits, environmental clearances, and any other regulatory permissions necessary for the project.

• Finance: Financing is essential throughout the project lifecycle. It involves securing funding for land acquisition, construction costs, design fees, permits and other project-related expenses. In many cases, you may need to consider interest costs and potential holding costs if the finished product takes longer than anticipated to sell. Financial planning ensures that the project stays within budget and timelines.

• Builder Selection: Choosing the right builder is critical for the success of a project. This process involves evaluating builders based on their experience, reputation, past projects, financial stability, and ability to deliver within specified timelines and budgets. Factors such as quality of workmanship, adherence to safety standards, and compatibility with project goals are also considered. Once selected, the builder enters into a contract to commence construction and met set milestones throughout the project.

• Contract Extension: During the course of a project, there may be instances where the agreed-upon completion date needs to be extended due to unforeseen circumstances such as weather delays, design changes or material shortages. Probable extensions should be factored into the agreement with contractors. Terms such as additional costs, revised completion dates, and any other changes to project specifications are typically addressed in contract extensions.

• Site Management: Efficient site management is crucial for maintaining productivity, safety and quality throughout the construction process. It involves overseeing day-to-day operations, coordinating deliveries of materials and equipment, managing sub-contractors, ensuring compliance with safety regulations, and maintaining communication among all parties involved. Effective site management helps to prevent delays, minimize risks and ensure that the project progresses according to plan.

• Project Settlement: Project settlement refers to the finalization and completion of all aspects of the construction project. This includes finishing construction, obtaining necessary certifications and approvals, conducting final inspections, resolving any outstanding issues or deficiencies, and formally handing over the completed project to you, the client. Project settlement also involves closing out contracts, finalizing financial accounts, and ensuring all legal and administrative requirements are met.

• Pre Sales: Pre-sales in real estate development refers to the process of selling units or properties before construction is completed. Developers often use pre-sales to secure financing for the project and gauge market demand. During this phase, developers market the project, showcase model units or renderings, and accept deposits or reservations from prospective buyers. Pre-sales help developers mitigate financial risks and expedite project funding, while buyers benefit from potential discounts or early selection of preferred units.

As you embark on your property development journey, remember that knowledge is your greatest asset. By mastering essential concepts such as site management, contract extensions and pre-sales, you lay a solid foundation for a successful project.

We're here to offer our expertise and support every step of the way. Whether you're seeking comprehensive project management services or simply looking for guidance, we're committed to helping you achieve your goals. Contact us today to discover how we can turn your vision into reality!