Five things to know before starting a development project

Those getting involved in property development, whether for the first time or not, must be aware of the common trip-ups many come across.

Developing can be a hugely profitable venture, but for those who don’t know their roof tiles from their floor tiles, it can be tricky.

Verve Projects has shared five tips that they’ve learned about common traps and what you can do to avoid them.

1. Never forget that time is money 
   
   Although there may be a complex issue that’s demanding all your attention, it’s important to keep all your other balls in the air at the same time.
   
   Otherwise, if one drops, it could start a chain of events (and costly delays) that may affect your bottom line.
   
   
2. Always surround yourself with the best team of consultants and contractors 
   
   While it may be tempting to go with a cheaper option, there’s every chance a low-quality provider won’t be able to deliver the best outcome, meaning you may need to put out spot fires later on.
   
   It’s always important to consider quality versus cost the first time around so you can budget accordingly and avoid costly hiccups.
   
   
3. Do your homework 
   
   Thorough due diligence is vital towards delivering a successful project. A development site may look viable on paper but if an unbudgeted issue goes undetected through the acquisition or tendering process – such as contamination or environmental complexities – it can blow a sizeable hole in your cashflow, erode profitability and leave you scrambling to secure extra funding at the project’s front end.
   
   
4. Always consider all the options 
   
   Never assume there is only ever one solution for a development issue. That said, once the preferred development solution is identified and agreed on – lock it in and focus on delivering your goal. Nothing erodes profitability and delays development timeframes like indecision.
   
   
5. Always confirm your communication objectives and reporting requirements upfront 
   
   Communication is essential towards the smooth delivery of any project. Always ensure open lines of communication, agree on expectations upfront and lock in regular meeting arrangements to ensure the swift turn-around of decisions and approvals, otherwise, refer back to point number one!

Source: Verve Projects.