How do you feel about property development problems? Personally, I try to do my best to tackle issues as soon as I know about them and find solutions. It’s the best way to get your peace of mind back and avoid delays.
No matter how well you plan and prepare, things will go wrong with property development projects. Some problems are preventable, but others simply happen. In both scenarios, it’s important to be proactive and tackle the issue head-on before it spirals out of control. Watch my latest videos on this exact topic here.
Make Your Site Visits Count
Site visits are a fantastic opportunity to check on things. You don’t need to be a building expert to see whether skips are overflowing, workers are wearing protective gear and the site looks generally in good order. Well-run building sites are busy but not chaotic. You should be able to spot workers going about their jobs efficiently and managers on hand to assist, if necessary. Any signs of the opposite may be the first indicator of a problem.
Stay In Control Of Supplies
What about materials? You can’t expect your development project to go to plan if supplies are delayed.
Who is buying your kitchens and bathrooms? Your builder may have offered to make those purchases on your behalf. Whilst that often means you can take advantage of industry discounts, it’s worth checking that the builder has the cash to buy everything you need. If not, take back control and consider purchasing the materials yourself.
The Right People In The Right Place
Having the right people in your team is as important as choosing the right builder. As a property developer, you cannot be everywhere, so you need to have trustworthy people in your team. Simply put, your project manager or site manager needs to have your back.
They can only do that if they understand the project fully. How else will they be able to spot problems when they arise?
Spotting problems concerns the financial side of property development, too. Most builders will invoice monthly for the work they have done. Assuming you are relying on a bank to finance your project, their surveyor will check that the work invoiced matches the work done.
If you spot a discrepancy between the two, it’s time to have a frank chat with your builder. Perhaps there is a genuine problem that has nothing to do with your project. Maybe you decide to help your builder work through a temporary cash-flow issue. The sooner you know all the facts, the more options there are to deal with the situation.
Mind Your Utilities
Utility connections need to be on top of your list before building starts in earnest. Never underestimate budgeting for utilities, and make sure the money is set aside right from the beginning.
Expect the unexpected is one of the best pieces of advice I can give you when it comes to property development. If you want to know more or need to discuss your project, book a mentorship call today to move your development site forward quickly and maximise returns.