Quote from @Galant Ant:
Permit delays in NY can derail timelines and budgets for developers and flippers. What are the best strategies you’ve used to minimize this risk and keep projects on track?
Hello @Galant Ant. @Peter Mckernan makes some good points in his response. I am typically on top of things where I do not let anything sit when the City review comments come back. Speeding up the pickup and drop is helpful in cutting down on time, however the Architect (and their office) are the ones to make the actual drawing changes. Therefore your contract needs to adjusted accordingly. What Peter might have left out, unless you are paying a premium, if you're paying a standard rate.. and lets be honest if you're a flipper you're trying to get these services at a discount.. why is it beneficial for the Architect to drop their other projects to jump on yours to get it back into the City in a couple days?
Work together enough and yes they could be more responsive with you but I have not seen that often. Befriending an Architect is likely the best business decision flippers & developers could do. I've only worked with one flipper for more than one project. All the others were one-offs and they disappeared. A lot of them didn't want to listen to sound advice from me, the person they hired, and projects went left and failed.
Some of the best information in connecting with that Architect is their knowledge of the locale and areas which are the easiest to get permits and start work quickly. Then you could just go straight to those locations to search for deals. But even more important is the knowledge of where to avoid at all costs since the timeline is too long to work.
Some strategies:
1. I have a way to cut down time and keep projects on track but adds the most risk. Piggybacking off Peter's number 1 point- get the design team (architect and engineer) engaged as early as possible and let them get construction documents/drawings going as soon as you're sure of the deal going through. I know that's hard to say since in real estate a lot can happen overnight. That's where the risk comes in. If you play your cards right, you can have the permit submission package ready for submission the week after Closing. Hard to do but not impossible.
2. Don't try to short change the design team's fee when their expertise could get you out of a pickle and/or help immensely to speed up the process. If they are fully part of the process and seen as a valued part, they generally will work better.
3. Offer the design team a piece of the equity OR pay a premium as incentive to keep to an established timeline (that is within their control). Example: "When comments come back from the City, Architect/Engineer will review, revise and resubmit within ______ business days."
What part of NY are you searching/working out of?