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Planning for a Commercial Development
by Abbots Finance
Published on this site: August 4th, 2006 - See more
articles from this month
A commercial development of any size is a serious undertaking. Get it
right and you come away with a good profit and happy buyers or tenants.
Get it wrong, and you could lose money and your reputation, making it
difficult to obtain financing next time round.
- The project:
A proper project plan should take you all the way through your development.
By necessity, it needs to be comprehensive, but the detailed requirements
of such a project often turn the project plan into a complex document
that confuses everyone who reads it.
Use the following steps to help keep everything organised:
Write a clear initial plan outlining each "chunk" of the project:
- Land purchase
- .Use and design
- Planning requirements
- Initial building requirements
- Central building phase
- Fitting-out
- Marketing
- Sale or rental
Each of these areas should be further broken down so that you know
exactly what has to be accomplished and in what order to make the project
successful. It is a good idea to use the available expertise of your
architect, designer, construction company and other advisers to ensure
that everything is covered.
- The timetable :
A project should always have an achievable timescale. Trying to accomplish
a development too quickly could result in corners being cut and in a
lower standard of build and finish. This in turn will have a negative
effect on your ability to rent or sell the development on at completion.
A realistic timescale is essential, and you should have an estimated
time schedule against each of the items in your project plan so that
you can see which items can be done simultaneously and which need to
be done consecutively.
- Keeping on track :
A commercial development uses the talents and expertise of a large number
of people and there will be an ongoing requirement to source and track
contractors to make sure that everything runs smoothly. It is important
that there is someone in charge of the project on a full-time basis
to keep it on track. This allows contractors to have a single person
to report to and shows everyone that the project is being effectively
run.
Successful commercial projects are those that have been carefully planned,
costed and scheduled before any work starts on the site. These projects
are always fluid and you should be prepared for things to change along
the way, but without a clear plan and a method of executing that plan,
your commercial development could be at risk.
Abbots Finance: specialises in development finance for residential
and commercial projects. Visit our website by clicking on http://www.abbotsfinance.co.uk
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