Are you torn between engaging professional help such as a development project manager and going it alone on your next townhouse project?
Well, stick around because in this video I’m going to share 7 benefits of engaging a development project manager.
Before we get stuck into the benefits. It’s important that I point out that engaging a development project manager isn’t going to make sense for all projects and in all circumstances and situations.
I’m going to put the key benefits on the table then it will be up to you to decide if they are relevant to you, your project and your situation.
Something to note straight out of the gate.
If your main motivation is to make as much money as possible from your project, then engaging an experienced development project manager should make every bit of sense.
An experienced and established development management company will get your project done faster and cheaper than if you run it yourself.
Even if you know how to run it yourself and including the project management fee.
This is a fact.
It’s purely based on the ability to plug your project directly into a wealth of experience, efficiencies and invaluable networks.
By default, you’ll pay wholesale for all of your projects costs all the way through.
In a nutshell, you’ll make more money and you’ll see your money sooner. These 7 benefits will detail how.
For the purpose of this article, I’m going to assume you already have a site.
1. Market Research
Market research is an important first step when looking at a site.
A quality project manager will undertake the required research and provide invaluable feedback and direction with regards to what you should be building on the site to maximise its value.
It will be important that you don’t overcapitalise and on the flip side that you don’t under capitalise either.
You need to make sure your spending money in the right areas, so you aren’t leaving money on the table. Something an experienced development management company will help guide you with.
You don’t want to get caught up and try and overdevelop your site either.
Attempting to overdevelop your site is guaranteed to hold you up in the permit approval process going back and forth with the council trying to address their concerns.
Time is money, so it’s important that you enjoy a smooth ride through council.
Side note: Learn about the two different permits required to complete your project.
2. Watertight Documentation
After you have achieved your planning permit approval and received your endorsed plans the next step will be to get your documentation in order ready for the tender process.
This is another critical step that if not done correctly will cost you both time and money.
You need to ensure that your builders are pricing apples with apples.
This means that every single aspect of the development has been considered and documented accordingly.
The last thing you want is for your projects builders to be making assumptions. Assumptions I can tell you from experience as a property developer are no good.
They will have the required experience and knowledge to execute this process with precision.
This will give you the confidence you need in the tenders that come back and will avoid surprises and potential variations once the project is underway.
3. Secure the Right Builder
The key here isn’t to find the cheapest builder but to determine the market price and connect your project with the best builder possible at that level.
An experienced project management company with runs on the board will have a builder network that you can tap directly into.
By default, you’ll end up paying wholesale for your build.
This saving alone should cover your project management company’s fee and some. Meaning you get everything else for free – including any negotiating on your behalf.
4. Street-side Services Connections
Your project manager will take responsibility for all of your street-side services such as your NBN, gas and water.
They’ll manage the application process right through to the connections onsite.
This allows your builder to focus on building and minimises the risk of them getting held up for any reason.
5. Builder Support
Your project manager will become your eyes and ears out on site.
They’ll have their finger on the pulse day in and out resolving issues in real-time helping to avoid potential delays saving both time and money.
They’ll also support the builder anyway they can and assume the responsibility of holding them accountable on time, quality and cost.
Essentially, your project manager knows how much things should cost and how long they should take.
This will guarantee that your project is delivered on time, budget and to the right standard.
6. Sales and Marketing
Remember, when selling property off the plan you are essentially selling a dream.
It will be critical that you find ways to give potential buyers the confidence they need to take action and put forward an offer.
Aligning your project with an established and trusted brand that has a long track record of delivering successful development projects will give that confidence to potential buyers.
It won’t only help you make sales but ensure you maximise everyone.
7. Plan of Subdivision
This is a big one.
It is going to be critical to the outcome of your project that it is managed in parallel with the construction of your project, and it’s not something builders manage on your behalf.
It’s not part of their scope.
Achieving a timely subdivision approval will mean you get your statement of compliance which is needed for the registration of your new titles.
And if you don’t get this right, it will hold up the settlement of your sales and ultimately delay access to your profits.
Your development manager will facilitate and manage this entire process for you. Guaranteeing you see you settle your sales and see your profits timely.
Side note – your development project manager, will help you select the perfect real estate agent to help you secure a premium price for your stock, something that is often not given enough thought or consideration, which is risky at best.
If you are considering a development project manager for your project, here are 21 questions you should ask before committing.
And finally, if you are looking for more reasons why using a development project manager is a good idea for your next dual occupancy project, check out this case study.