Construction of a new property or carrying out a major renovation can be a complex task. One needs to go into any construction project with a solid understanding of the steps that are involved. A recent article highlighted the four major steps in the building process. While these steps may vary in their details from place to place, throughout the developed, English-speaking world, they are more or less broadly the same.
Plan your project out
Most good real estate developers will tell you that 90 percent of the work on a project is done before the shovels first touch the ground. Finding the right lot, working with an architect to design a great space, and selecting the right building type for the project specifications are the first steps toward any successful build. There simply is no substitute for strong preparation in carrying out a successful construction project.
Get all of the necessary permits
This is an area that is easily overlooked by those new to the construction or real estate development business. But failing to get the proper permits, which also includes a failure to anticipate any major government-imposed roadblocks that may come up, is one of the chief causes of construction projects being abandoned.
In the United States, zoning laws are extremely important aspects of new construction and remodels. And building codes are equally important. However, even something like federal HUD policies can put a development project in jeopardy. Understanding the permit process and what can go wrong is an imperative part of successfully completing a construction project.
Manage the construction according to codes and permits
Once construction has started, there are a whole new set of problems that can threaten a development project. Chief among them is the risk of falling out of compliance with permits and codes. Failure to build to code is one of the main causes of having to redo aspects of a construction, a process that can quickly end up putting a development project in the red.
Sign off and wrap up the development phase
Real estate deals are inevitably complex. This is even truer when the property has been recently constructed or extensively renovated. If you’re new to building properties, it is crucial to make sure that you have properly completed all aspects of the project, signed off on it, and released yourself from future liabilities.