Establishing Your Development Team

Last time, I spoke about the different ways you can structure the land acquisition in your quest to become a new build property developer. Following on from that, I’m going to explore the importance of establishing a quality ‘development team’…

By Lyndon Forshaw

When it comes to successful property development, attempting to do everything yourself is simply false economy. That’s why establishing a quality team of experienced employees or external consultants is crucial to the success of your business.

No matter how much effort you put into studying any particular field, it’s highly unlikely that you’ll gain the depth of knowledge or expertise of a person whose dedicated their academic and professional career to that field.

Don’t get me wrong, I totally encourage anyone to learn and completely understand the various stages and processes involved in property development. What I am saying is this: to be truly successful, you will ultimately need to call on the services of specialist advisors or experienced professionals.

Your role as ‘the developer’ is to manage the entire process and bring the specialists together as and when necessary to facilitate a successful project. On a personal level, this is ultimately what I enjoy the most – facilitating and overseeing a successful project from inception to completion.

As you can appreciate, there are numerous specialist roles and occupations at each stage of the development process. For instance, during the planning application stage you may well need to call on architects, planning consultants, ecological consultants, BAT consultants, traffic planners, party wall surveyors and landscape consultants, to name but a few.

And there’s more…  the construction phase may demand ground work contractors, brick layers, plumbers, plasterers and electrician… I’m sure you get the idea!

Luckily, you don’t have to get involved with hiring all these individuals. I’m all for making things as easy and stress free as possible – especially for people who are still learning the ropes.  So what’s best way to make things simple?

My approach is this: break the process down into key stages and let those you employ for each stage manage that stage and bring in any further specialists as they’re required.

For example, for the construction phase, I always employ a single main contractor. They are legally bound to carry out the construction as agreed in the contract according to the architect’s plans. That means they manage and employ all the various subcontractors as and when necessary to complete the project.
So in real terms, all I have to do is arrange to pay my main contractor in stages as the development progresses. Easy!

Let’s take a look at the key members that are essential to your development team:

1. You! – You are the developer and overall project manager and facilitator.
2. Land Broker –If you aren’t proficient at sourcing sites yourself then a land broker can be invaluable.  Visit www.LandLounge.com for further assistance.
3. Planning Consultancy – You may employ a planning consultant to completely oversee your planning application.  They may appoint the architect and all other specialist consultants as required for the application, such as ecology, BATs or traffic, etc.  However, for small, non-contentious applications, a planning consultant may not be required.
4. Architect – Crucial to you for the planning application and the construction phase. Always obtain fixed price quotes from several different architects. A good architect should provide an initial feasibility study at no cost. I work with a couple of fantastic practices who can work nationwide, so if you require any help on that, please get in touch via my website: www.ukpropertyexpert.com. Ask to see examples of their previous work and thoroughly research their previous developments and references.
5. Quantity Surveyor – For small developments it may not be necessary to employ a surveyor, as your main contractor will price the work and materials accordingly. However, for larger schemes, they are crucial to establishing actual and estimated development costs.
6. Contract Administrator – For the majority of my smaller schemes, I use JCT contracts. These are the various industry standard contracts between you (the developer) and your main contractor.  A professional would normally be required to administer the contract and make sure it is completed and adhered to in the correct manner. For larger schemes, I recommend employing a specialist building surveyor to do this. However, for smaller schemes, the role can be covered by your architect.
7. Structural Engineer – Virtually all new buildings require the input of a Structural Engineer at both the design and construction phase.  They look at a range of areas, including strength loadings of walls and lintels in the design of the development, as well as foundation design (amongst many other things).  Your architect will normally recommend a decent one. Structural engineers are often the unsung heroes of ‘fancy and cutting-edge architecture’. The architect often comes up with the off-the-wall designs. It’s the structural engineers who then work out how it can actually be built.
8. Main Contractor – As I’ve said countless times in the past, these days the only realistic way for a novice to enter the world of developing successfully is by employing the services of a main contractor to carry out the construction element of the process. It is, however, crucial that you employ an extremely experienced and proficient contractor on a fixed price contract basis (most banks will insist on it anyway!). Be sure to check references thoroughly, go and see previous schemes of theirs, ask to speak to satisfied clients, ask to speak to architects they have worked with. Only employ the very best.  As with anything, you will have to take into consideration their price too. Again, if you are struggling to find a decent contractor, please do not hesitate to drop me a line.
9. Sales Agents – To a large degree who you choose to help market your development will depend on its location. You will generally have a choice of several local estate agents who will all be keen to help you. Meet with about three of them, obtain their opinion of values and written fee quotes and marketing plans.  Choose the one that you feel offers the best deal.

So there you have it… the main members of your development team who will be crucial to the success of your development project. It’s critical that you get the right people on board… particularly when it comes to those core professionals who you will work with on each of your projects… the Planning Consultant, Architect, Structural Engineer and Main Contractor. Get the right team in place and you increase your chances of success tenfold.

Next time I will look at the construction phase of the development and what to expect.