development work flow chart
DESCRIPTION
A Basic Flow Chart on development work ProcedureTRANSCRIPT
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LandAcquisition
DesignConsultants
Finance
SalesMarketing
Construction
ResultsAchieved
Investigation Phase One
1. Investigate growth suburbs; CBD + 7 km2. Good road, rail access to CBD3. Good shopping, school, medical amenities4. Select best suburb & drive all streets.5. Grade 1st,2nd,3rd class streets;Note Down6. Special note of untidy houses7. Create File of all Data
1. Ask architect for correct zoning and land size for your intended project ie 3/4/6 units2. Investigate Authority Plan.Dept.Facilities
1. See Finance Broker for Personal Financial Capacity.
1. Visit all new unit project displays2. Critically examine & photograph3. Collect brochure & sales data4. Make up files as per Book's advice5. Visit all agent's offices
1. Visit all building sites for your size project.
Area Selection & Investigation
Page 1 Investigation Phase Two
1. Go to Authority Planning Dept.2. Access or buy zoned planning map(s)3. Color grade 3 classes of streets4. Check selected houses against zoning5. Check other street zoning6. Make list of likely development properties
1. Make Preliminary Finance Application
1. Talk to project sales agents.2. Explain your development intentions3. Find out price resistance level4. Ask agent for customer's criticism5. Get Agent's own criticism of unit
1. Get to know builders; tell them you are starting a new project soon
List of Zoned Properties Determined
Investigation Phase Three
1. Revisit suburb & properties2. Score each for your needs3. Decide on properties to buy
1. Check site capacity calc's2. Check site dimensions with architect so units can fit on each property.
1. Finance Capacity Determined
1. Check market data file for current sales prices2. Decide on price range you can offer for each property
1. Tell them you prefer to have builder on the team. See Book2. Find out $/sqm build cost from builder + architect as check
Properties & Offer PriceRange DeterminedInitial Feasibility Study Completed
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LandAcquisition
DesignConsultants
Finance
SalesMarketing
Construction
ResultsAchieved
Page 2 Acquisition Phase one
1. See Book; will you negotiate the Buy or will you use a Buyer's Agent?2. See Book; approach each property owner ask & listen. If successful:3. Go away and prepare purchase contract4. Consider all information & determine a fair offer; be mean & risk losing property. This is a one shot opportunity; read book again
1. Land contract; subject to DA 2. Prepare design brief for consultants including your construction cost budget.
1. Land contract; subject to finance
1. Find builder you are comfortable with & follow the Book's advise on how to proceed
Purchase Negotiated on ConditionalContract; Land Under Control
Acquisition Phase two
1. Land deposit into trust account2. Original contract to purcheser (you)3. Copy of contract to seller4. Copy of contract to seller's lawyer5. Take action on contract conditions & note action dates in diary
1. Appoint design consultants2. Start DA design work with architect
1. Draw cheque for Deposit on Land2. Advise Finance Broker land is under contract - subject to DA & Finance & send copy of contract.
1. From Market data file use sales rate per sq. metre in your DA design for feasibility study
1. Get builder to prepare square metre based price on your DA plans
DA Plans Start Preparation
Acquisition Phase three
1. Keep Vendor informed regularily.2. Ensure Contracts have been sent to all parties & lawyers
1. Complete DA design & DA application2. Lodge DA application
1. Draw cheque for DA application.2. Do new feasibility study
1. Discuss unit plan with selected Agent whose opinion is informative & market aware + get opinion on sales prices.
1. Get plan to builder. Ask him for any inprovements or cost efficiencies. Give him a week & visit him again; take notes.
DA Lodged with AuthorityComplete Updated Feasibility Study
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LandAcquisition
DesignConsultants
Finance
SalesMarketing
Construction
ResultsAchieved
Page 3 DA application phase
1. Maintain Contact with Sellers
1. Architect follows up Authority; attends Authority meetings
1. Obtain DA Application fee receipt2. Start writing finance submission
1. Ask agents to review sales pricing + recommended marketing costs.
1. Get builders advice on plans2. Builder to price plans
On-going Follow Up To AchieveData Requirement
DA Approval & Finance Submission
1. Maintain Contact with Sellers
1. Architect resolves inquiries with Authority on DA issues2. Get consultants fee proposals for contract documentation3. Pay consultants for DA design
1. Complete finance submission & present to finance broker
1. Get real estate agent's sales prices on DA plans
1. Get fixed price from builder
DA IssuedLodge Finance Submission
Finance Approved
1. Maintain Contact with Sellers
1. Appoint consultants for working drawings
1. Monitor area sales data2. Prepare marketing plan3. Prepare marketing material4. Pre-sales -Yes/No?
Finance Approved
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LandAcquisition
DesignConsultants
Finance
SalesMarketing
Construction
ResultsAchieved
Page 4 Land Settled + Body Corporate
1. Settle land
1. 1st Working drawing meeting2. Order soil test
1. 1st progress claim from bank/land 2. 1st Payment design fees
1. Monitor area sales data2. Order site sales board3. Finish marketing material4. Establish Body Corporate5. Create sales contract - note pre- sales contract is differs to normal
1. Builder updates price as working drawings proceed.
Land OwnedBody Corporate Established
BA Lodged
1. Working drawings & specification complete.2. Lodge plans for BA (Building Approval)
1. 2nd Progress claim from bank
1. Monitor area sales data2. Print marketing material3. Establish actual sales prices for market presentation.
1. Get fixed price & time contract2. Sign Contract3. Demolish or Remove House from Site
Working Drawings CompleteMarketing Materials CompleteBA LodgedConstruction Contract Signed
Construction Starts
1. BA Issued
2. 3rd Progress claim from bank
1. Monitor area sales data2. Sales material to agents3. Sell units
1. Start construction
BA IssuedConstruction StartsUnit Sales Starts
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LandAcquisition
DesignConsultants
Finance
SalesMarketing
Construction
ResultsAchieved
Page 5 Construction & Unit Sales
1. Attend weekly site meetings2. Arch. inspects; issues instructions3. Arch.certifies builder's claim less retention amount.
1. 4th Progress claim from Bank
1. Sell Units2. Contracts to Lawyer3. Monitor agent's sales activity
1. Attend site meetings with Arch. & inspect works
Construction Proceeds%Units Sold
Construction Finishes & Units Sold
1. Attend weekly site meetings2. Arch. inspects; issues instructions3. Arch.certifies builder's claim less retention amount.
1. 5th Progress claim from Bank
1. Last unit sold2. Contract to lawyers
1. Construction completed
Construction CompletedAll Units Sold
Certificate of Completion
1. Arch. inspects units & Compiles 'Defects List'2. Arch.certifies builder's claim less retention amount.3. Arch. issues Cert. of Practical Completion
4. 6th Progress claim from Bank
1. Lawyer arranges settlement of unit sales
1. Builder attends to defects list2. Builders rubbish removed3. Landscaper finishes
Certificate of PracticalCompletion Issues by Architect
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LandAcquisition
DesignConsultants
Finance
SalesMarketing
Construction
ResultsAchieved
Page 6 Units Settle - Bank Paid
1. Architect Final Inspection2. Architect certifies release of retention funds.
1. Discharge Bank loan from unit sales income
1. Units settle
1. Defects list completed2. Builder hands over all guarantees3. Builder moves off site4. Builder receives retention funds
Units SettleBank Loan DischargedBuilder Gets Final Payment
Profit Achieved
1. Complete final feasibility study using Actual Final Figures2. Determine final profit & return
1. Unit owners take possession of their property2. Follow up after sales service/visit
Profit Target AchievedReview MistakesWhere's the Next One?