Existing Statutory Utility Services On The Property Development Site Time will be needed for all of the above works and processes to be completed, and these need to be integrated into the overall Master Time Schedule or Programme Of Works.Ģ. The costs of supervision of the work during execution.Approval costs, such as Local Authority inspection fees.Party Wall Design costs, preliminary and detailed stages.Costs that will be incurred will be Party Wall Surveyor´s fees for both parties.There is a well tried and tested Party Wall procedure that needs to be followed by both parties. Design work is usually required, that needs to be submitted to the neighbour´s Party Wall Surveyor for their acceptance in principle, and then in detail. Such Party Wall Conditions can take many months to resolve what needs to be done to the satisfaction of the neighbouring party and your own team. Some of the likely risks on any property development project could include the following, which is by no means an exhaustive list. The answer to that question would be different for every property development project, because they are each individual and it is not possible to take a carte blanche approach and say that a particular percentage allowance for contingency would cover everything that may be required to complete your property development project. So what sort of risks could there possibly be that would endanger the cost and time taken to carry out a typical property development project?
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You as the property developer (or investor) need to ensure for your own peace of mind and commercial security, that your property development appraisal includes a comprehensive and complete risk assessment, and that the full cost and time implications of the risks have been taken into account. This would be a naïve and potentially harmful and dangerous strategy, and the person most likely to be hurt by such a simplistic and superficial approach is you as the property developer (or investor). Such a low provision can be viewed as simply wishful thinking. It is easy to take a superficial view of the risks and say that you have covered this by allowing a 5% or 10% contingency amount. You would be well advised before committing to any development appraisal to ensure that it has fully taken account of all the project risks of your property development. This tendency is known as “Optimism Bias”, and is a recognized phenomenon. There is a tendency when assessing the likely budget and timescale to carry out property development projects, to err on the side of Optimism, rather than realism. More importantly risks need to be allocated to suitably qualified and knowledgeable individuals, so that they can be mitigated and managed to close out in a timely way. Why Do Risk Assessment And Risk Management of Property Development Projects? Here is our opinion about why it is essential to carry out a thorough Risk Assessment And Analysis at an early stage, and to document your risk register.