You have decided to undertake a multi-million dollar development in the Hospitality or Multi-Residential markets. Where do you start?
Do you have the necessary team of professionals in place to put your project before a lender? From site analysis, including market studies, to land acquisition and assembling the right team of construction professionals, development is a complex endeavor. Does your team have the industry knowledge? Perhaps your team has the ability, but your members will be stretched to their limits as you work toward achieving your desired goal. Millions of dollars are at stake. Commercial construction development is not to be taken lightly – especially for the first-time owner or builder.
Before you can turn the first shovel of dirt at your ceremonial ground-breaking, the financial investment can be significant, and you should not risk those initial investment dollars by trying to find your way in the dark by yourself or with a limited team.
In order to ensure commercial lenders that their institution will be funding a financially sound project, you have to present a loan package detailing the scope of the pending project with all necessary documentation in place. All of it. Don’t give the lender a reason to tell you to come back after you have filled in the gaps. The ability to impress usually exists for one time – one moment.
You have to establish that you have the knowledge and the team to bring the “X” project on paper to a successful conclusion from the “get go”. Your desire coupled with your financial ability are just the beginning components. Stop the time drain on your project by putting the right pieces together from the beginning
Unfortunately, there appears to be more and more issues rising on construction sites across the country. Every construction vendor or professional firm that seeks to be part of a project are very accommodating during the “getting to know you” period. Every phone call and question are answered. Then, the contracts are signed and what originally appeared to be a “good mix” for the successful team becomes strained and, while, probably unintentional, agreements and promises fall away to the side of the job site and the only “thing” that matters are the words that are or are not in the contract documents.
Professional friendships can remain long after the contracts are signed, as long as clear expectations and performance benchmarks are established. Open communication between all parties on a continuous basis along with clearly defined roles are a must for successful multi-million dollar commercial construction projects. And, yes, knowing when to advise you, the owner, when you are failing in your role and helping you to get back on track, is a crucial role of any owner’s representative or project manager hired by the ownership group. Professional relationships require professional boundaries.
From conception to lending to construction and finally to opening, Skelton & Coleman can be of assistance to you. By being your Owner’s Representative, we can provide a complete package of services to you or we can fill in where your team may have less depth of experience or time.