Property development can be daunting so I’ve put together some
FAQs to help address some of the important questions that will arise as you
start your development.
This has been broken down to a three part series;
1.
Getting Started
2.
Design, Planning and Approvals (as seen last
Thursday)
3.
Construction Time
2. Construction
Time
“Each of us is
carving a stone, erecting a column, or cutting a piece of stained glass in the
construction of something much bigger than ourselves,” Adrienne Clarkson.
Construction
time is the best part of developing property…seeing that first sod turned and
standing back as the excavator starts to form up your site is truly satisfying. The groundbreaking, also known as cutting the
site marks a massive milestone in your development project.
There is so
much work that needs to be completed before getting to this stage. You’ve found a site, negotiated to purchase
it, researched with council and other authorities, run your feasibility, got
your designs done, had your building quotes completed, prepared documentation
and lodged your DA, perhaps battled with council. Then you’ve obtained your consent and
engineering and construction certificate plans and the CC consent. Once fully approved there are still more
hoops to jump through and it’s off to your lender to get your finance organised
and finally unconditional approval.
The
development process is like an iceberg.
Most of the work required in project managing your property development
is done before you cut the site. It’s
all hidden below the surface.
So by the
time your project comes out of the ground, you have done most of the work. Inexperienced developers won’t understand this
but I know the sheer volume of hours required to get a project to the
construction phase is phenomenal.
When can I start construction?
As soon as you
have your DA – Development Application & CC – Construction Certificate
consents and you have obtained an unconditional finance approval, your builder
can start construction.
What is the first process?
Site clearing is
required before you can start preparing your slab or footings. So ensure your
builder has included vegetation and tree removal. If you are demolishing an old house or
building then ensure this is done before your builder is ready to start as you
do not want to hold up the process.
How should I manage my builder?
It’s important to
have open communication with your builder from the start. Explain to him that
you want to be involved and depending on your experience and time available let
him know if you will be project managing the development or engaging a project
manager.
As project
managers, we are in constant communication with our builder’s site or
construction mangers.
What does a project manager do and do I need
one?
A project manager
can help you to fast track your development. A good project manager will:
·
Save you money
·
Save you time
·
Minimize your risk
·
Teach you how to manage your development
·
Give you access to sites not on open market
·
Professionally manage, record and report the process
for you
·
Share their local knowledge, experience, contacts, suppliers
·
Allow you to keep your day job
·
You can learn the process then hopefully feel more
confident to manage our next project.
You could use a
project manager if you are inexperienced or time poor or both. It’s a good idea
to use a project manager if you want to learn the process of developing, you
can have your hand held through the development and will be amazed by what you
will learn by being guided through the process.
Main steps in the construction phase include
(for typical slab & brick construction):
-
Site preparation.
This involves clearing of the site, pegging out of the site by the surveyor.
Sometimes retaining walls will also be built at this stage if required.
-
Slab. The plumber
will need to lay plumbing that will be located beneath the slab of the
development. This needs to be done before the slab can be formed up. The slab piering is then completed as per the
engineer’s specifications and plans and then the slab can be poured. It’s very exciting to see the slabs go down.
-
Frames & roof
trusses. The frames are generally
prepared before being delivered to site and can be erected very quickly with a
day or so. It’s great to walk around the site once the frames are up and get a
feel for each room.
-
Roof tiling of metal
roofing. Some builders prefer to
complete the roof before starting the brickwork and other builders work the
other way around. I’ve found predominately builders want to get the roof on as
quickly as possible to protect the frames.
-
Brick work. This
stage really gives the development true structure and you can feel the
development making good progress when you see the brickwork completed.
-
Rough ins. This involves the electrical and plumbing
wiring and pipes to be installed before the internal linings to the frames.
-
Internal linings.
After the rough in is complete, the insulation will be installed into the wall
and ceilings and then the plaster will start on linging the walls and ceilings.
You really get a good sense of space within the dwellings at this stage.
-
Waterproofing and
tiling. The wet areas will be water
proofed in preparation for the tilers to start work, generally after or even
during the timber mould out.
-
Timber mould out.
This stage involves the carpenters installing the skirting boards, architraves,
door jams and doors and kitchens.
-
Lock up is when
all external doors including garage doors are on.
-
P.C. fit out.
P.C. is a term for a Prime Cost Item and includes tapware, bath,
mirror, vanities and other
accessories which are installed at this stage.
-
Practical
Completion. This is the point in time when an inspection is conducted when
builder is almost finished. You will walk through the development with the site
manager and point out any items that still need attention. By this time it
should only be touch ups and minor items requiring installation.
-
Handover. This is when you are happy the construction
has been completed to your satisfaction and to the plans and after paying the
builder’s final invoice, keys will be handed over to you.
When can I lease out or sell my development?
Once handover is
completed and you have received the Occupation Certificates from council or
your private certifier, you can lease the dwellings out. If you are building more than one dwelling
then you may also be subdividing so you cannot sell the individual dwellings
before you have subdivision approval. They may be sold subject to approval or
registration of the subdivision.
Seeing your
development emerge from the dust and dirt and slowly take shape until it
resembles exactly what you have planned is one of the most exciting and
satisfying moments you could experience as a property developer.
As I see Property
Bloom projects come to completion, it really makes me feel like we’ve achieved
an amazing thing for our clients; manufactured equity, provided education, created
strong yields and most of all helped them fast track their portfolio and plan
for their future. It is such a wonderful
feeling to step back and look at what’s been created and understand the needs that
have been met for our clients and for the local communities we develop in. Seeing
the dwellings tenanted or sold and lived in by families that will get to enjoy
the fruits of your labour is what it’s all about.
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