Property developers working in sync with their builders invariably find themselves in an advantageous position. For one, special relationship with a builder cements trust and ensures priority for your ventures. It also cannot be ignored that the builders will allow specially structured discounts for your jobs which you can then forward to your clients.
Builders can give developers prior information on land
The builders, who are keen to learn, do not face a lot of difficulty in finding those ‘secret’ land releases. This information can be a handful as it can help you find those subdivision-friendly and dual- occupancy oriented lands.
Working in sync with site managers also important
Apart from builders, the site managers’ proximity to the developers is crucial. These are the professionals working on sites each day and aware of any stoppage in work (out of whichever reason it might occur).
When I say crucial I cannot mean it any lesser than that. Work stoppage can add to the cost of the property development and is eventually laid on a developer.
5 Phases of property construction
A property is constructed over five phases, after each of which your builder sends an invoice to the developer; one that the latter duly presents to the bank. The bank conducts its personal valuation before attesting the figures and forwarding the amount.
The five stages in order of completion are laying slabs, working on frame and trusses, working on roof and brickwork, working on internal linings and the last stage called the practical completion.
How to save construction costs
It may be a wise move to seek project tenders where the builder includes the cost of fencing and landscaping within the original project. It is a sure-fire way of saving costs.
Talking of saving costs, remember you can claim a depreciation deduction called “capital works allowance” for the consultant fee and associated charges paid during construction. It may surprise you that only about 40% of 2.5 million investors claimed this particular deduction in the year 2011-12.
I can manage the entire project for you and can also suggest builders that I personally endorse or help you screen for the right builder. Whichever way you go, choosing the right builder and maintaining a good relationship is crucial for your home building or renovation project’s success.