Taming the Build: Tips for Property Developers to Manage Their Builders Effectively
One of the most important relationships you’ll build as a property developer is the relationship with your builder. Most property developers will find that their relationship with a builder is often the make or break as to whether a project is a success or failure from the outset.
From initial planning through to the long days on site trying to get construction completed on time , effective builder management is so important. At Mardesign, we have years of experience managing builders and helping our clients manage every part of the development process so they have one less thing to worry about.
Here are some of the key tips we give to every client during their development projects:
Laying the Foundation: Pre-Construction Planning
The first step to a successful build is to select your builder. This decision shouldn’t just come down to who can offer their services at the cheapest price – this could lead you to work with an unprofessional builder who is unequipped to do the job properly.
At this stage, you should talk with a number of different builders. See who you get on with most, think about whether they’re going to be reliable, and if they share your vision.
Take the time to meticulously check references and assess their experience working on similar projects as yours. Check their licences and insurance policies and whether they have a history of developments being delivered on time and within budget.
Once you have your builder, it’s time to define your project. This will involve drawing up the architectural and interior design plans, a detailed materials specification, setting an achievable timeline for completion, and agreeing on the payment terms. This is usually part of the journey where Mardesign will get involved, we’ll work with your builder to make sure that all of your plans are watertight and feasible.
Communication is Key
Good communication channels are the lifeblood of a build. Establish firm communication protocols from the outset. Set time frames to have regular meetings (ideally at the building site) to review the status of progress and concerns, and proactively pre-empt potential issues that can delay the project. In addition, stay in constant communication via phone/video calls and email. Consider using project management software that facilitates the sharing of live drafts among all stakeholders, to help everyone stay organised.
Quality is More Important Than Cost
Of course, cost is critical, but track quality more precisely than rock-bottom pricing. Start with a budget that allows for realistic contingencies for the unknowns that usually creep into a construction project.
Work with the builder to set up a system that measures costs transparently so you can track closely and spot overruns as they develop, before they blow up. As we all know, costs can quickly get out of control on a project, so a good tracking system will allow you to keep within your budget.
Building Momentum: During Construction
Make sure the build goes smoothly by appointing a project manager to manage site progress daily and to perform regular site inspections – whoever is getting the building constructed for you has a duty to deal with any issues that arise and make sure that the works being carried out conform with the plans and specification that were agreed for the contract.
At Mardesign, we’ll be your trusted onsite partner to make sure that everything is going smoothly while you focus on your next deal. We’ll make sure that all of your tradespeople are working together, that things are being installed correctly, and that everything is being completed on time.
On a professional construction and building site, although micro-management is ineffective, it is best to maintain an active presence there in order to answer questions and resolve discrepancies early on.
Managing Changes During Your Project
Changes also occur during construction and, while necessary, these must be carefully managed.
Every change in scope needs to be documented on paper, noting the resulting cost, schedule and quality impact, and negotiate adjustments to the contract. Do not approve verbal agreements, as you’ll lose the paper trail and potentially cause big issues further down the line.
Hiring a Third Party Inspector
Don’t let the builder’s own quality checks substitute for hiring an independent inspector to confirm that the building meets all applicable building codes, is built to the agreed-upon quality, and that the builder’s subcontractors are properly trained and fit for the work, with adequate insurance in the event of an accident during construction.
Working With Your Construction Team
As a property developer, we recommend treating your builder and their crew with the same professional courtesies you would show a coworker.
Respect has no downside: being clear, pointing out the good work you see, and raising concerns respectfully makes everyone want to do better.
Finding a good builder that you work well with isn’t the easiest thing in the world so, once you start building up these strong relationships, you could have a long-term partnership for your future projects, too.
Reaching Completion: Project Closeout
Once the project has reached completion, take time to evaluate. Review what worked and where things could have gone better, and document lessons learned.
Whether you stick with the same builder or find a new one for your next project, all the lessons you learnt during this project will make the next one much smoother.
Don’t forget to ask your builder what they learned too. A joint post-project review promotes continuous improvement, because nothing teaches better than a true peer review.
Get Started With Your Next Project
Have you just signed a contract for your next development project or planning some large-scale renovations to your rental property portfolio? Mardesign is here to help you make your project as smooth as possible.
We’ll get involved early on in your project and see it to the very end to make sure no stone is left unturned and that you’re completely satisfied with the final product.
Want to hear more about what we do? Get in touch with our team today!
Check out what investors say.
“Raquel has a talent for managing & delivering various interior design projects simultaneously. As a Project Manager, I always knew that working with Raquel all aspects of design and the refurb were fully covered and delivered on time, even for the tightest timeframe possible! The interiors end result was always of superb quality and I would highly recommend working with Raquel if you are looking into uplift your property performance through interior design’”
—Nuno Leal. Galaxy Macau