Real Estate Development – Ways to Avoid Costly Mistakes During Property Development Construction!

Once the building contractor is on site and the project is underway – it really is an amazing feeling when you start to see your real estate development project start coming up out of the ground.

Where a developer is planning to sell some or all of the units, marketing activity starts the moment finance is secured. The construction phase is usually the most expensive, therefore we carefully manage the project during this stage.

We schedule regular site meetings with our Building Contractor, typically every week or two, to discuss any queries or potential problems and we make sure our Building Contractor has fulfilled their Occupational Health and Safety (OHS) obligations fully.

Remember that it’s the Building Contractor (not the Owner or the Architect) who represent themselves as the expert on erecting buildings. Therefore it’s never a good idea to tell the Building Contractor how to build the building instead we instruct the builder as to the desired result to be achieved, not how to achieve it.

We pay our Building Contractor progressively, either monthly or at the completion of each scheduled construction stage, using draw-downs from the construction loan.

It is not unusual for the Building Contractor’s claim for completed works to vary from their schedule so it is important to make payments only to the value of the completed work.

Some real estate developers appoint an independent building inspector to review the quality and amount of work at each progress payment stage as this sends a message to the Building Contractor to be on the ball. This could be your Architect or you can find a good Building Inspector from the Master Builders Association in your area.

We try not to make changes after construction has started, as they usually end up being costly, and delay the completion date. If changes are necessary to the original contract scope of works or finishes, we request the Building Contractor advise us in writing what the variation to the original contract sum and the delay time will be so we can approve it BEFORE he makes any changes.

Before the handover at final completion, we have a joint inspection of the project with our Building Contractor (we also recommend with the architect and/or building inspector present). A list is made of all the defects and problems that need to be fixed by the builder before the building is officially handed over.

Simply, the developer’s aim under the contract with the building contractor, is to produce the designed building on time, within budget and at the quality standard that has been specified.

Therefore, during the construction stage, it is essential that a savvy developer (or their appointed project manager) monitor the progress and cost of the construction work to ensure that the project is delivered on-schedule and on-budget.

Any time extension from the plan/schedule or variation in cost will potentially affect the profitability of the property development project.

The building contract generally will detail the developers/owners responsibilities. Depending on the contract chosen, these responsibilities will typically include:

* to ensure adequate access to the building site

* to pay progress payments promptly

* to insure the completed project, after practical completion

DELAYS AND EXTENSIONS OF TIME

These are many reasons why delays occur during the construction stage, causing the late completion of the project. Many of these reasons are outside of the contractors control and some of the most common of these include:

* bad weather

* a delay in receiving necessary information from the developer or the consultants

* technical problems

* industrial disputes

Most standard building contracts will allow the builder to clain an “Extension of Time”, for delays caused by factors outside of their control. The practical effect of these extensions is to adjust the Completion Date that was agreed in the contract.

However, where the building contractor is responsible for the delays, either through a lack of programming or for any other reason, the building contract will frequently include for the payment of Liquidated Damages to the developer.

In these circumstances, where the project is delayed beyond the Completion Date noted in the contract, allowing for any extensions of time, the final payments to the contractor will be adjusted for liquidated damages, in the amounts stated in the contract, for each day the completion is delayed.

RISKS DURING CONSTRUCTION FOR A DEVELOPER

As the construction phase is usually the most expensive stage of the entire property development process, and the period that a developer will typically have the greatest negative cash-flow, we continue to carefully manage the project during this stage.

The construction stage can have the greatest potential effect on the final construction cost and the timing of the project. As even short delays or relatively small changes in the cost of the construction can have a detrimental effect on the profitability of the project we recognise this stage as a time of potentially significant risk to the development project.

The risks, during the construction stage, that we are particularly conscious of include:

* the contractor is unable to complete the project

* the completion of the construction is delayed

* the costs of the construction increases significantly

* unacceptable standard of building work

Inviting Living Space Through Home Interior Design

To be effective, there must be a total coordination of style, color and organization within the room itself as well as with the furniture and accessories. It will be important to decide if the design of the home is to be for everyday use or will it be considered as a showcase. There is a wide range of ways that home interior design can help to perform the function for which the room was intended. It needs to be warm and inviting for everyday use while maintaining the appearance of complete organization and appeal.

For example, when considering seating possibilities, the many available choices will depend on the seating needs as well as the size of your room. In the eyes of a home interior design expert, the couch has come a long way since its humble beginnings. In today’s home, the couch is more a part of a home’s décor than its original intention to provide seating for two or three people. The smaller sofa, which is often referred to as a love seat, can provide either extra seating in a larger living room or it can serve as the couch in smaller rooms.

Tables – Functional or Clutter Catchers?

The number of tables placed in the living room will also be dictated by the space in the room, as well as the number of seating spaces required. Keep in mind that the type of tables in the room will detract from the home interior design effects if they end up being used as clutter catchers. If the living room is large enough, a large round coffee table may suffice. On the other hand, it may just take up needed floor space, causing an effort just to walk around it, which is not its intended function.

End tables also can be used to serve a function, whether it is to hold a reading lamp or simply for decoration. These tables they should mirror the style of all the other furniture within the room in order to maintain the home interior design theme.

On the whole, the most misused piece of furniture in today’s living room is the media center, which may house a television and any other type of entertainment electronics. Depending on your home Interior Design style, locating that just-right piece to hold all your media electronics, and still fit in with the décor of the room can be a real challenge. Coordinating the style and color in any and all rooms will demonstrate your home interior design abilities.

Great Home Interior Design Ideas for those on a Budget

Who does not want a lovely home with beautiful decors and wonderful interiors? Perhaps only a hermit would want to keep his dwelling as austere as possible. You, on the other hand, would want to keep your place nice and charming – very conducive for living. Unfortunately, a lot of people are afraid of updating their interior design because of the dreaded costs of redecorating their living space. However, this is not actually true because there are many great ideas that could help you beautify your room without you having to sacrifice your budget.

Here are some great home interior design ideas that you may follow if you want to rev up a room that has been having the same look for ages.

– Reorganize your furniture. By changing the positions of your furniture, your room can achieve an entirely new look. Try changing the angles of fixtures or pulling them away from where they are now to update the dimension and look of the room.

– Paint your walls. Paint can come quite cheaply nowadays, and you can totally change the look of a room by painting the walls. You can make the change so radical, that it would really become a great transformation. You may even just some accents like straight lines, or stencil patterns to enhance the appearance of boring walls. You will be surprised as to how great the possibilities can be.

– Let Mother Nature in. You can freshen up any room by bringing plants. This can also help freshen the air as well as plants are known to filter the atmosphere. If you do not have time to take care of plants, then you could have artificial leaves and flowers. Having a touch of green makes the room so much pleasing to the eyes.

– Add a simple rug. Area rugs can create a soft touch in a room. A rug can add a piece for the eye to look at, making a very boring room more interesting to look at. Look for brilliant colors that still complement the motif of the room for that jazzy accentuation.

– Hang mixed frames on your wall. A picture frame collage could spice up any naked wall. Picture frames also add a sense of coziness and warmth especially if they contain photos of your loved ones.

– Change bathroom fixtures and fittings. You do not really have to remodel your entire bathroom to achieve a new look. You can just change the faucets or the flush handles, you can add some vanity lights or mirrors, and you would witness a dramatic change in your bathroom.

– Add new lamps. Bringing in light to any room adds warmth and a glowing presence that can make a gloomy room become full of life. Use interesting shades if you want something trendy.

– Replace the pulls and knobs of your closets. Just like with bathrooms, you do not really have to change fixtures to change a room’s look. Just change the handles and knobs of your cabinets and you can totally transform the entire room. You could go modern and use chrome or stainless steel; you may also go classic by installing brass or bronze.

– If you have the budget, install new wallpaper. Just like, paint, wallpapers can really update the look of your room. Nothing is crisper than a newly wallpapered wall. If you do not have enough money to wallpaper the entire room, you can just put wall paper borders to add interesting accents to your living space.

Decorating your home need not be expensive. With these great home interior design ideas, you can make your house as good as new.