Project Management

There are two extremes for a subdivision developer.

First. After finding a property having no further active involvement in the processes necessary to subdivide it, other than financing, instead leaving everything to your professional consultants, just pay their invoices, basically you are an investor, not an active participant.

Second. Being a hands-on Developer as an active participant with your professional consultants in the many varied decisions during both the subdivision design phase, and strategy before and during presentation of your applications to regulatory agencies.

For individuals choosing to be active participants, make time in your schedule to explore my “EXPERTISE CONTENT“, it follows on the next page. It is a comprehensive list of the necessary expertise topics to be successful in the subdivision development business.

It begins with “Chapter One – Seeking A Property“ and continues through fourteen more information packed chapters to, “Chapter Fifteen – Warnings“.

With the expertise you obtain, you will be in the best position to make the most effective decisions from finding a property to subdivide, through its design, application approval process, installation of infrastructure, and finally acceptance of public improvements (roads, etc.) by the municipality.

A key element in accomplishing the above is by implementing a project Timeline.

So, what is a Timeline? A Timeline is a schedule for delivering specific stages of a subdivision project at particular dates. Beginning immediately upon your receipt of a Seller signed Purchase/Sale Agreement, through to completion of all subdivision infrastructure installations, acceptance of the public improvements by the municipality, and the ability to start building homes.

A Timeline schedule needs to be set in consultation with your professional consultants.

Also, the same Timeline process should be used with your site contractor for the installation of all infrastructure improvements. It should be finalized with the contractor weeks prior to the anticipated date of subdivision approval, allowing for a quick startup of construction.

Missing a Timeline date may result in unfavorable events affecting your subdivision, such as:

A.) Losing part or all of a seasonal or regulatory construction period;

B.) Subdivision competitors beating you to market;

C.) Finance rate increase;

D.) Additional lending availability;

E.) The lot and/or housing absorption rate decreasing;

F.) Construction materials shortages, and/or increases in their cost; etc.

A Timeline is invaluable in another important area, Risk Control.

What is Risk Control or Risk Management?

Risk Management. Eliminates or minimizes adverse impacts to your project, such as:

A.) By meeting or exceeding completion dates as set in your Timeline;

B.) Adopting a conservative gross income projection for lot sales;

C.) Adopting a infrastructure construction budget with a buffer, for either unanticipated work and/or
increases in materials costs.

D.) Borrowing money in stages, reducing loan interest (standard in sectional subdivisions);

E.) Jump start positive cash flow by selling one or more lots to an established, quality home builder.