PROPERTY DEVELOPMENT PROCESS

• First Pre-Sale Phase

  This stage is where the developer investigates properties based on their finance pre-approval.
  This is also the stage where you develop the concept for the site you’re considering as well as conduct a feasibility study. 

  During this time the developer should be consulting some of their expert team.
  Generally, the following services will be required in order to accurately assess the feasibility of the site:

  • A Solicitor to check the contract of sale
  • A Town planning consultant to determine the site’s development potential
  • An Architect or draftsperson to design a concept
  • An arborist – trees on surrounding sites can restrict what you can develop on your site.
  • Your project manager or a builder or possibly a Quantity Surveyor (if it is a larger project) to determine build costs.

  It’s also a good idea to touch base with the planning department at the local council.
  This department can provide you with an overview of any future planning or zoning changes in the area, which could limit your development in the future. 

  What you consider a relatively straightforward application, can sometimes be held up in council for over a year due to seemingly minor issues.
  A good town planner working in conjunction with your architect should forewarn you of any possible points of objection from neighbours. 

  With this insight, the town planner and architect will coordinate a design that has greater potential for faster council assessment.
  Above all, once you’ve found that perfect block and carefully researched any restrictions, act fast.
  If it really is the perfect site for development, the chances are another developer has their eyes on it too. Don’t allow procrastination to get in the way of a good deal and a great opportunity

• Contract Negotiation and Purchase

  At this stage, the land is purchased at a price that allows the developer to make a commercial profit.
  You need to think about how much you are willing to pay and the final value of the apartments at the end of the development project.
  Negotiating a price is best left to the expertise of a buyer’s agent (one who understands the development process well). Don’t take any shortcuts here, as the fees charged by a homebuyer are often covered by the savings you realize with the best negotiated price.

• City Planning and City Planning Permits

  In this phase, your architect draws up plans that fit planning regulations according to council development guidelines. This phase can be complex, so it may also require input from a planner.
  The role of a planner includes providing feedback during the design process, writing the development application, and handling additional inquiries, objections, and appeal cases.
  You will also need the help of a surveyor who will establish the title boundaries of your property, conduct a survey of nearby properties and how they will affect the proposed development, and consolidate a number of titles into one title for you if you have more than a block and draw up an estate plan.

• Working Drawings and Documentation

  Once development approval has been obtained, your plans are the stage where plans for the building are finalized and require the involvement of a number of consultants, including an architect and an engineer.
  Architects are the creative designers of your project, but they can also do much more in your development process.
  The three essential parts of the architect’s role are:

  • City planning
  • Realization of detailed working drawings that also require the coordination of the necessary consultants, such as geotechnical, structural and civil engineering engineers.
  • Construction contract administration. Preparation The architect can also assume the administration of the construction contract and the construction supervision.

  behind a building, but must also work closely with engineers to ensure the structure is structurally sound. Depending on the complexity of the build, you may need more than one type of engineer.
  At this stage, you may need several different types of engineers, including:
  Geotechnical or soil engineers – who test the soil to determine the conditions needed for a structural engineer to design the building foundation
  Structural engineers: Work above ground to develop a structural design that is functional and cost-effective. They work with the architect taking into account the weight of materials (e.g. concrete and steel), furniture, windows, cars and many other factors. Civil Engineers: Design roads and bridges. For residential properties, this role may not be necessary, but civil engineers will design systems to cope with heavy downpours and slowly trap water in place so that it seeps into council assets.
  Fire and Plumbing Engineers: Work on high-rise apartments or commercial buildings that require the design of water, gas, sewage piping, as well as fire hydrants, hose reels, and sprinkler systems.
  While the architect and engineers make sure your building looks good and actually stands, they have little regard for the cost of your structure.
  During the design phase, the surveyor or QS – not to be confused with a surveyor – ensures that the project is within budget through cost control and suggests alternative ideas to other approaches in construction to save money. A QS is generally not required for smaller developments, but for construction costs over $2 million, lenders often require a QS report.
  Once everyone on the team is happy with the plans (including the developer), the next step is to get the building permit. This process can take one to two months.

• Pre Construction

  This is the time to get offers from builders and finance your project.
  How to find the right builder?

  Finding the right builder can be daunting. There are so many options, it’s hard to know which is best for your project. 

   

  One of the best ways to find reputable builders for your development is through recommendations. These recommendations can come from friends, family members, co-workers, or even your architect or development manager (who are perhaps the most knowledgeable as they are constantly developing). Only hire a registered construction worker and be sure to request a copy of all certificates of builder’s insurance before hiring

  In particular, look for evidence that the builder you are considering can handle the type of project you are proposing. 

   

  Determine this by visiting past projects they’ve completed and talking to their previous clients to make sure they can deliver on their promises.
  Construction contract and specifications

  The contract should contain the terms and conditions agreed between you and the builder, including the price and terms of payment; outline the scope of the project, who is involved, and what each party should do to support the other. 

   

  It should explain what will happen if there is a dispute between the developer and the builder and include a timeline agreed by both parties in the contract.
  It is also stated that the works must be carried out in accordance with the specifications, drawings and calculations in order to comply with the relevant building regulations.
• Preparing the Site

  Construction has now begun and you are well on your way to completion.
  Please note that the construction phase can take from six to twelve months, depending on the size and complexity. Also take into account adverse weather conditions and other disruptions to construction times. Payment to the builders during construction and related details will be included in the contract.
  Payments are usually divided into six installments:

  • An initial deposit to confirm acceptance of the contract and start construction,
  • Payment at the end of the basic phase,
  • Payment at the end of the framework phase,
  • Payment at the end of the lock-up phase,
  • Payment at the end of the determination phase,
  • Final settlement is upon completion of the project.

  If a Quantity Surveyor has been involved in the project, they will check these progress payments at regular intervals. During the work the QS will also appreciate modifications or variations or additional works and in case of disputes the QS will be called as an expert or arbitrator.
  
  At various stages of the construction project, a building inspector will need to certify that the work has been completed in accordance with specified building regulations and standards.

• Completion

  Now that you are almost done, the building is complete and your project is almost done.
  This is the time to submit the distribution plan to get separate ownership rights for each apartment and either refinance and lease your completed project and keep it for the long term (my preferred strategy) and also make your project profitable.