When Trebuchet Capital Partners decides to initiate a new development project it must hit certain objectives (not in order):
A concrete need, raison d’ être within a certain window of time and location
An opportunity to outperform an external or internal benchmark
The finished building must be better than those around it
We must be proud to attach our name or an investors name to the building
Tenants must love it
Real Estate Development management includes every aspect of a construction project, from RFP through final sign off, including:
Initial Environmental assay(s) and remediation
General Contractor selection and oversight
Based on the investors desired level of control, a skilled development manager is responsible for, first and foremost, in the role of the investor’s representative throughout the course of the job and offers services cohesion from initial RFP all the way to final signoff.
Supplemental responsibilities consist of planning drawings to technical specifications managing and overseeing scope, specific situations, records, and budget concerns. The investment manager also investigates service provider and materials supplier initial qualifications and makes certain that the building project fulfill all requirements.
There are two phases associated with development management in which development managers concern themselves: pre-building development and the actual construction.
Pre-building development stage
During the organizing, design, and pre-building stage, the General Contactor works with the investment manger and architect in an effort to define the building project’s extent, budget, along with other basic aspects like energy efficiency, style, structural integrity, final market value, and mechanical and electrical systems before construction commencement. The manager also ensures that materials comply with specifications and are contained within the forecasted budget.
This is the stage where all the pre-building planning is executed upon. This stage handles the physical building development contingent on the specs, chosen vendors, and forecasted budgets with variance allowances as discussed in the earlier stage. The construction manager coordinates and oversees:
On-site construction guidance and control
Project cost accounting and management
Sub section responsibilities:
Measurement of realized vs budget forecast allowances and mitigation of any cost overruns
Evolution of budget and variance/slippage for materials
Construction of the project management schedule and its maintenance/updates
Supervising the building development progress
Scheduling on site walkthroughs with municipal building code inspectors
Arrangement of material storage, delivery and security
Rental and scheduling of cranes and other construction equipment including on site lighting
Managing any rework or warranty work with the investment manger or building tenants, installation and set up of building monitoring systems, as well as any post development issues.
QC (Quality Control) QA (Quality Assurance)
Throughout the building development and upon completion, QA and its control is crucial to ensure that the end product complies with the original requirements, requirements, and subsequent performance objectives. Development managers guarantee that the project is held to the forecasted budget analysis, but that the actual finished building is structurally sound and conforms to all building and local codes including LEED certification, if within that scope.
This material is contains information from publications prepared by the Trebuchet Capital Partners and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of June 2015 and may change as subsequent conditions vary. The information and opinions contained in this post are derived from proprietary and nonproprietary sources deemed by Trebuchet to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Trebuchet, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader.