Project development — so that we all still have a roof over our heads tomorrow
What is project development? The definition
project development In the real estate sector, includes all processes that are necessary to plan, finance and implement a construction project or the conversion of a property. Project developers — including owners, construction companies, architects, brokers or project companies — ensure that all processes are structured, from strategic planning to completion and management of the building. The SIA Norm 102 defines the following phases of a real estate project:
- Strategic planning
- Preliminary studies
- Project planning
- tendering
- realization
- management
The 6 phases of project development in the real estate sector
1. Strategic planningIn the first phase, the goal of the project is defined: What benefits should the property offer? Target groups and needs are analysed in order to develop solution strategies to satisfy the needs of the target group.
2. Preliminary studiesThe project is defined and examined in a feasibility study. In addition to structural feasibility, which requires detailed knowledge of the legal framework, economic feasibility is also examined: Are there users who are willing to bear the construction costs?
3. Project planningThis is where initial draft plans and approval documents are created, which include architectural and technical details. An exact cost calculation, a so-called cost estimate with an accuracy of +/- 10%, is prepared. In addition, the planning is specified and construction processes are designed to finally initiate the approval process.
4th call for tendersThis phase is followed by the selection and appointment of partners such as general contractors and subcontractors as well as banks. This requires detailed tendering plans, which include not only architecture but also building technology. Only if a project is well planned at this stage can it be implemented without major additional costs.
5. RealizationImplementation includes the preparation of implementation plans as well as effective implementation, construction. Finally, the new building is put into operation. This shows how well work has been done so far. Great emphasis should be placed on a strong construction management team.
6. ManagementAfter sale or rental, real estate management takes over the care, maintenance and administration of the property. Adjustments or optimizations are made depending on long-term use. It makes sense to involve a manager right from the planning stage so as not to neglect the needs of this important phase.
Types of project development
Investor developer
The developer ensures planning and capital requirements and remains invested even after the project is completed.
Trader developer
The developer develops and sells the turnkey property to investors, but assumes no long-term responsibility.
Service developer
This developer exclusively provides services without taking the financial risk.
Project development in practice
Project development is our core business. Feel free to get in touch if you would like to know more about this important sector of the economy, which secures a roof over our heads for all of us.
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