the parties in the development process

8/11/2019 The Parties in the Development Process

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The parties in the development process:

The six main parties involved in the development process are:

1.

The professional advisers

The architect, quantity surveyor, valuer, planning consultant and possibly consulting engineer,

construction manager and project manager.

2.

The clients

The developer and the landowner, who could be an occupier or an investor/trade in

development property. The client could be a private or public sector client. The client could be

the owner of extensive estates such as a statutory undertake or the heir to historical landed

estates, it could be a major investor like a financial institution such as a pension fund or

insurance company.

3.

The planning authority

The planning authority would deal with planning and highway matters and may have policies to

encourage development for employment purposes for instance.

4.

The contractor

The contractor is employed on the construction of the building and may in turn employ

subcontractors. The nature of the building contract or method of building procurement, as it is

now more commonly termed, will determine the relationship of the contractor with the client.

5.

The community

Local residents may have views on the proposed development in addition to the planning

authority as may pressure groups or specific interest groups affected by the developmentproposal.

6.

The funders

These are providers of short term funds for the development and the providers of long term

funds in the event of buyout or partnership arrangement at the end of the development. The

development may be initially funded by the client who may also be an owner-occupier or

financial institution.

The role of property development in the economy

1.

To revitalize the economy by encouraging investment

2.

To use the assets available in the production process to obtain greater economic growth and

added value.

The need for efficient property relates to government policy

The post war policy of demand management led to:

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Adjustment in government spending and taxation

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Deflation and reflection of the economy


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Problems of inflation

The solve inflation:

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The economists looked at the supply side of the economy

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Saw the need to encourage efficiency and competitiveness in world markets.

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Hence saw the need for efficient space and

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Hence the need for effective property development.

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Development is a land conversion process by charge of use, construction, reconstruction or renovation

of land or buildings. The scale of charge differs ant the change is motivated because of client needs. If

the clients needs are profit oriented then this conversion process is generally stimulated by the need to

achieve higher profitability from land use or business enterprise. If we assume that developers and

property owners to maximized profits, then there are 2 necessary preconditions before a development

project will be initiated:

1.

The expected value of the completed development must exceed the cost of the site and thedevelopment costs, including a sufficient level of profit for the developer.

2.

The value of the site for development purposes must match (or exceed) its value for existing

use.

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There were key phases in the development process : evaluation, preparation, implementation, and

disposal. The most important phase was evaluation.

evaluation encompasses both the analysis of the marketplace in general and in particular market

researchand the financial assessment of the project. It should be carried out before any commitment

is undertaken and while the developer retains flexibility evaluation involves the combined advice of

the development team but in the end and the responsibility for interpreting that advice rests with the

developer who has decide whether or nor to bear the risk of the project.

12 main stages development process

1.

Choosing a location

2.

Identifying a site and carrying out a detailed site survey

3.

Providing an outline scheme and appraisal

4.

Negotiating for site acquisition

5.

Design6.

Planning consent

7.

Finance

8.

Site acquisition

9.

Detailed plans

10.

Tender documents for construction

11.

Construction

12.

Occupation or marketing and management.


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One of the major problems facing property development is the supply of land and building in

appropriate locations for development. By providing urban land, rather than looking for Greenfield sites

with the associated environmental consequences, problems of development would be lessened.

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The development process

Initial consideration

Clients requirement

3 factors (time, cost, quality)

Assess vialibity

(depends on funding, planning, professional team, site appraisal)

Planning

Funding

Establish the project team

Prepare brief(architects design and costs from the QS and planning application

Construction

Marketing and process

the parties in the development process

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