How do you keep your development contract on budget?

Set a realistic budget with a realistic program for the works based upon wider market conditions, project complexity, Tier 1 Main Contractor availability. Client can procure limited items directly to also ease pressure on budgets.

Proper and clear design can eliminate many of ambiguities! Also communication and ability to raise concerns are one of the many keys in understanding the scope

In order to avoid future complications and misunderstandings, which cost time and money, it is essential for all stakeholders to be engaged in defining the scope of the project at the beginning. Front-load collaboration by bringing everyone to the table (instead of letting them work in silos in the planning phase) until they all own the scope of the project which they helped define. In this way, respective responsibilities and expectations will now be clearly defined, detailed, and unavoidable.

Yes, understanding the Scope of work is the first step, but even if all parties are on the same page and communicate with each other properly there are certain things that come into to disturb the budget. Like hyperinflation in some areas of the world for example Turkey, Pakistan etc. Risk management should also be a part of the budget.

The other contributor’s perspectives are good. The basic rule to follow for me is to not make changes. Do your homework on what you want with your design and stick to it. If you cannot read plans get a 3D model made. Get the design right. Get the detail right. List all the products you want in finishes schedules and do not allow for substitution. Have a tailored specification and do not compromise. My company assists clients with this every day.

Plan for a realistic budget and programme building in contingencies all the way through. We often build budgets and programmes which are optimised to a level which is just not achievable in the real world, however we pander to the banks and clients who demand to see theoretical perfection. Risk sits in the areas of the lesser known elements and hence we should allow for this in both time and cost. You will gain in areas you are optimised, knowledgeable and capable.

Adequacy of the graphics is key. The scope should be well appreciated by the team and early notices are very necessary to prevent cost overrun. The responsibility of the stakeholders must be adhered to concerning the condition of the contract to avoid delays and by extension cost overruns.

Always plan with contingent circumstances in mind and If possible make sure to include the possibility to renegotiate the project if it goes beyond budget. Good project management/ quality assurance plan is key and performing constant monitoring is crucial.

Each project presents unique challenges. Contingencies may vary, but they should never come as a surprise. Beyond accounting for known risks, one should also add a margin for unknown risks. When factoring contingencies into the project budget and timeline, one should consider potential risks at multiple levels (local, national, international). When working in other countries, a local partner will help to highlight such risks and contingencies. In Greece, for example, special challenges are presented by complex zoning laws, archaeological and environmentally sensitive areas, listed buildings, and earthquake-proof design and construction.

With current market conditions in Canada contingency money is a luxury. One of the biggest risks once you close on a property or land and after you run due diligence is the rezoning and development process. It is important to have lots of meetings with the planner on your file so you truly understand items like Area Development Plans, Official community plans and the like. It is also important to understand during the due diligence phase the rezoning and entitlements risks. Meet with Councillors, Mayors and key community members to present your project before it goes to the general public. If you can get the elected leaders, community and planners on board with your vision you will likely succeed in getting approvals.

Sometimes in business you have to triangulate information before you commit. When I solicit proposals from contractors and consultants I already know who the key players are and what they generally charge for fees. I also network and build relationships with contractors and consultants well before I solicit proposals. If I have a winning team, they charge fairly, are competent in the work they do and know what I expect of them we will typically negotiate with just them and not go out to market. Those who give me the best service, charge fairly and are easy to work with (no egos please) have a good chance of getting repeat work.

in lease negotiation is finding a balance between the landlord's desire for stability and the tenant's need for flexibility. 1. If the demand for the location drops this condition could force the landlord to lower the lease rate. 2. If the economy is not doing well and business slow, this will create a condition to negotiate a lower lease rate. 3. If the area gets more builders to construct more buildings it could allow rates for the area to be more competitive and landlords to be willing to inter into negotiation.

Always ensure you conduct a bidding process and select a range of suitable constructors who will compete for the assignment. When selecting your builder, ensure that they provide the best price and conditions to suit your business objectives.

Employ a balanced negotiation strategy that aims to create value for all stakeholders. Utilize market research data to back your positions and be prepared to offer alternative solutions that can meet the objectives of both parties. Document all agreed terms meticulously to avoid future disputes.

Treat others as you would like to be treated. It bothers me when I don't pay my team on time. If they are performing and are engaged it is important to pay on time. I prefer general contractors and consultants that are familiar and can use project management systems like Procore or Autodesk. The key to project success is proper documentation. When I start a project I always tell the team what I expect for document review timelines. If someone is not pulling their weight or not meeting their deadlines I make sure to nip it in the bud right away. Excel is a great program, but having a cloud based financial management tool like Yardi is crucial for success.

The key is to ensure adequate planning and then follow through with constant monitoring and control measures of the project to ensure the baseline is maintained or no deviation from the baseline plan

We'd recommend having a 100% independent Project Manager to act in your interest and be able to track and control the project throughout. They will be in charge of monitoring the project, supervising contractors and suppliers, making decisions in your best interest and keeping track of everything so that there are no nasty surprises or additional expenditure that wasn’t in the budget.

Implement a rigorous financial control system, possibly leveraging software solutions that offer real-time budget tracking against actual expenditures. Regularly review this data with your financial team and take corrective actions as needed, such as renegotiating supplier contracts or optimizing resource allocation.

The projects that don't go well are the best teachers. Be aware of design decisions that made sense in design, but proved impractical when the building is in use. Every construction issue should be reflected upon and changes implement in new developments. Over time the list of issues will get shorter and you will have developed your company standards. We keep a lessons learned and developments mistake log unofficially at our company. Creating a design standards document should be a priority when time permits. It also helps speed the design process along because your design team will know what you need and want in a project. Picking the same design and construction team (if they executed well) will also help avoid development mistakes.

Upon project completion, conduct a comprehensive post-mortem analysis. Involve key team members and stakeholders to evaluate what went well and what didn't. Document these findings in a formal report and integrate the lessons learned into your organization's best practices for future projects.

Progress claim. We build around 15 “ houses” a day. All precast. Comlums, beams, walls and footings. Even hollow floor slaps All was set up with a very small downpayment on 10% and then a progress claim system where client come and inspect against drawings. We had a few times where the client claimed owner ship while the wall was drying. By that he was safe, we get our money same day and all was happy. Progress claim are the way ahead

Having a process and setting expectations for new developments is critical. Make sure that if the process and expectations are not being met you tackle that right away. Do not wait for it to get worse. Lean on your team and try to build trust and rapport with your consultants and contractors. You can't do it all and in order to grow and not get overwhelmed proper delegation and follow up is key.

Change Control Process: Establish a formal process for handling scope changes. Any alterations to the project should be documented, evaluated for impact on the budget, and approved by both parties. Risk Management: Identify potential risks early in the project and create mitigation plans. Budget for contingencies to handle unexpected issues. Benchmarking and Analytics: Utilize benchmarking and analytics to assess the project's progress against the budget and make necessary adjustments.

Be flexible, There are more than one ways to skin a cat. You can still achieve target project benefits by shifting your perspective on the deliverable by asking "what am I trying to achieve with this decision?"

It is crucial for the real estate development Project Owner to implement during pre-development phase; 1) Surface (ex. environmental compliance, topographic surveys) and Sub-surface investigations (archeological, soil investigations) to mitigate regulatory, time and cost overruns risks etc. During the development phase, the Contractor has to validate the Owner provided pre-construction survey data and soil investigation report in the field before altering or starting any excavation or backfilling. In case of substantial or material differences between the Owner provided survey and soil data, the Contractor has to immediately inform the Owner verbally and to follow through with a formal written notification with detailed explanation.