A dip into estate development waters - Part I
Have you ever been interested in being a developer or owning properties? This article will satisfy your basic curiosity motion from just a concept in mind to actual realization. Dip your toes in the real estate waters, shall we?
The developer is the main idea or brain behind a building or facility and could either be an individual or a corporate body. The Edge at Labone, Acasia at Cantonments, Nova at Roman Ridge and Niiyo at Dzorwulu are all apartments developed by Devtraco Plus. The developer coordinates all activities, converting ideas from paper to real property.
The journey usually begins with acquiring a piece of land for development. With the land, there is a clearer picture on which idea best suits the location. Then a feasibility study can be conducted which consists of an Intensive research that goes into how viable the idea is with projections to support the business case. A thorough investigation of the current market price and demand analysis key components of this study and will inform decision making moving forward.
Based on recommendations from the feasibility study, funding can be secured or made available for the project. The financial framework is built at this point and this gives headway for the project to actually begin.
All protocol must be duly observed. It’s important to get government approvals and goodwill for the property and generally, being in good standing with all stakeholders; environmental consultants, legal, just to name a few. All permits must be secured and the neighborhood be psyched for the project ahead.
The contractor is hired by the organization to build the project according to the plans and specifications and timelines on which the contractor bid and for which he was awarded the contract. The contractor works with the Architect and reports to the Project Manager.
The construction Supervisor works for the contractor and with direction from contractor, may also report to the Project Manager. The Construction Supervisor supervises the daily operations at the construction site and makes recommendations to solve problems. The Construction Supervisor works with the Project Manager and the Architect to resolve differences as they develop including change orders, draw requests, and other concerns, to the Developer’s satisfaction.
The Architect is one of the first to be hired – often to lead concept workshops, but primarily to design the project according to the criteria set forth by the Developer and within the restraints of the Developer’s budget. The Architect is responsible for value engineering and may assist the Developer in putting together an efficient team to build out the project. The Architect signs off on the drawings and may be hired at an additional expense to inspect the project and confirm that the project is being built to specification.
A Title Company is selected by the Developer to close the financing on the project, provide Title Insurance for the project, review the drawings and disburse payments for the project, receive all lien waivers on the project, and perform the final closing and reconciliation for the disbursement of all funds for the project. The Title Company works with the Project Manager on any discrepancies or problems that need resolution and may establish an escrow to hold funds for final distribution.
A major piece of the project is the legal component. The legal documents of the project will be drawn up or reviewed by outside counsel who may or may not work on a pro-bono or reduced fee arrangement, because the legal work is critical to the success of the project.
After the property has been built, then comes in the Property managers. They see to the day-to-day management and maintenance of the facility to bring value to both the developer and the client/user.
It takes a man to come up with an idea but a team to execute it to perfection. Becoming a developer starts with knowing these fundamentals. At Devtraco Plus, we are equipped with a team in great standing who have driven ideas and renderings to remarkable developments which have won us several awards in the industry.