New Home Construction consists of 3 main phases including, Pre-Development, Construction & Project Completion.
The Pre-Development stage encompasses several key steps which are recommended before construction should begin: Market Analysis, Site Analysis, Conceptual Plans, Cost Analysis & Permits.
Pre-Development is critical to the rest of the development process going as seamlessly as possible as this is where the problems or potential issues are vetted, concept plans are developed and cost analysis and budgets for the project are determined. With the cost of materials and labor continually going up you want the estimated date of completion to be as accurate as possible.
- Market analysis
- Site Analysis
- Construction concept plan & design
- Cost Analysis
- Permits – according to local government policy
Factors such as the complexity of the project and acquiring the necessary permits are important to be considered in the pre-development stage as well, because any setbacks to the project completion date can mean higher cost and potential loss. To ensure that the project doesn’t go over budget it is vitally important that everything be vetted thoroughly in this stage.
Construction begins in phase 2, which means schedule and quality control come into play. Keeping a close eye on the project’s development and ensuring that the project remains on schedule and up to par with industry standards is critical to the timely completion of the construction process.
Items to Keep Tabs on:
- Are safety standards being upheld by the crews?
- Are all building regulations & requirements being followed?
- As each portion of construction is completed, are they inspected to ensure everything is up to code?
- Is the project remaining on schedule or are other factors causing delay?
- How can the issues be quickly resolved?
If you are not knowledgeable in the construction guidelines required, it would be prudent to have a project manager on site to keep a close eye on the project’s progress at each stage. Doing so should help with both quality control and keeping the project on schedule. Also, ensuring the crew is paid based on milestones completed throughout the process helps to keep your crew focused and motivated to complete the work in a timely manner.
In the final phase the project has reached the point of completion and the registration permit must be acquired from the city website. This process may differ slightly based upon each city’s unique building codes and specifications. After this is completed your new home is now move in ready!
(For residential New Home Building in the cities we provide private lending funds for)