There have been increasing costs hitting all aspects of property development from project management fees, builders labour costs, material costs and this is set to further increase this year following a spike in global inflation from 2021 as economies globally reopen from Covid-19 restrictions, as well as the sector grapples with shortages of skilled labour following Brexit too.
However, if you are taking on or investing in a property development project, don’t let these factors discourage you from taking on a cheaper project manager or builder who may come in simply to take on the job.
Here are our 6 recommendations of things that you should consider:
1. Contracts
Ensure that you set up proper contracts with your builders with fixed price contracts and time penalties. Also, routinely pay off the development costs, either monthly or quarterly, depending on your agreement.
2. Regular Communication
Have regular meetings to keep a good flow of communication with the builders/project manager and request that you are kept in the loop with any additional costs that come up during the project so that there isn’t a surprise not at the end when payment is due.
3. Request and encourage transparency
Request that the the builder tells you the full scope of all the other projects he/she is currently working on. A SME builder will only be able to take a certain amount of work before the quality drops or they move from building site to building site, meaning you may drive by one afternoon and find your development empty and stranded. Not a position you want to find yourself in!
The secret it to be careful who you employ.
4. Do they have a trusted team?
Many Master Builders can project manage for you and bring in good local trades from their network, saving you time and hassle. Decide if you want your builder to take overall control, or to manage particular parts of the project, and make it clear who’s responsible for other trades required on the job.
5. Be Specific
It is so important to be absolutely specific.
A set of drawings is a good start, but include the structural details too– are you asking the builder to work this out? If so, make that clear or, alternatively have the structural calculations all done by an engineer before you ask for a quote.
Make sure you include jobs you want doing now and potential jobs you want doing in the future as this may affect the way the first jobs are carried out. For example, if you want a two storey extension but can only afford a one story now, foundations need to be laid.
6. Assess their past projects
Ask to visit other properties the builder has worked on, especially similar jobs. Also read any reviews online.
If you would like any advice or recommendations, we’re happy to help. In terms of a development manager or project manager, we work with two companies, at the level you would require.
There is strong bond and trust with attention to client detail and managed to not only get through COVID-19 and the effects of supply chain and staff shortages, through quality control and selecting the right clients to work with.
Call us direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.
