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Updated about 1 year ago,
Life cycle of Industrial Flex space project - Managing Risk
Hi , I'm Rohan. I plan to undertake an Industrial Flex space project, first timer on any real-estate project . I'm very close to putting an offer on a 3 acre land and want to understand all the aspects related to construction I need to be aware of. i have build myself a exhaustive list of all that i need to consider which tell me i need the following people to work with -
Civil Engineer, Architect, Development Project Manager, Construction Project Manager, Other consultants: noise, wind, signage, LEED, lighting, etc., Landscape Architect, General contractor
Usually how would you go about the life cycle of the project. I'm thinking this should be order
1. Find suitable Land - I have found a property that is zoned correctly around 3 acers but has a creek on it and gas line running adjacent to the property
2. Civil Engineer - to determine building codes and determine area sqft area that can be build
3. General contractor - to determine cost of building, along with site work and other foundation costs including Landscape Architect
4. Market survey to determine average rent - I already have the numbers for current market
5. do the profitability maths
6. I'm approved by the bank for a project already, so I need to present the bank with our proposal
7. work through rest of the construction life cycle with general contractor
what i'm confused with is, how do i make sure to get least number of surprises the lead bumping up to project cost significantly
(small additional cost will always be there ) - like sewer/water is on the wrong side of the street we need special contractor and additional work done, very huge storm pond is needed, etc..
can i put a contingency in the land deal so that i can get enough time to square out all such unknowns related to that specific property ?