Quandary of construction ?

Construction starts with a dream of the builder and gets completed when the final cheque from the last customer is realized
In this article we are going  to review various decisions one has to take before the actual construction starts.

1.Lone crusader?
The first decision which a builder needs to take is whether he shall be working alone on this project or needs a financier with him.

This has a few situations ;
1.Working with own funds
2.Having a working partner with him who shall also do part of the investment.
3.Having a sleeping partner [ financier] who shall not be operationally active.
4.To take loan from financial institutions.
Each decision has its own merits & demerits.
2.Own land ?
Having decided mode of finance , the next decision is whether to construct the building on own plot or it can be developed with some one else’s land.
There are various practices followed.
For example,one such arrangement is called 60:40 method.
Here the builder does not do any investment in plot but has to bear entire construction costOut of the final property developedhe has to allot 40% of the total built up to the land lord. Land lord  may either do the marketing of this 40% property himself or through the builder .

Sometimes the builder may agree to pay the cash equivalent of 40% of the property to the landlord at the prevailing market rate.

3.Take the right people to plan :
Third decision is the appointment of Architect
The architect is appointed usually  through previous association or  references obtained within group.

For some , this selection  is very simple, an architect who can give maximum yield on the given plot is considered eligible.

Maximum built up area per sqftof land)
Some builders consider the overall planning, uniqueness of design etc vital attributes in architect’s selection.
And of course the crucial criterion is the professional charges of the architect.

4.Package deal includes RCC designs?
Another decision is whether to appoint RCC consultant separately ?
Various options exist:
1. Architect himself is also the RCC designer.
2. Architect has a  RCC designer working with him or for him .
3. Architect recommends a RCC designer.
4. Architect leaves the selection of RCC designer to the builder.

In the cases 1,2 & 3 builder has a one point  dealing with the architect who gets all RCC drawings done from his consultant.

5.Who will get the approvals?
This is regarding the permission to build [ municipality approvals]  to be obtained  from the competent authorities, prior to beginning the construction.

The options are :

1. Architect shall himself liaise with the authorities and shall get the corporation approvals.
2. Architect shall only give the drawings. The builder needs to liaise with the authorities to get the corporation approvals.

3. Builder appoints a Liaison Architect who just gets permissions & approvals.

6.Who shall fight for you in Court of Law ?

This decision is related to the appointment of the Legal consultant who shall guide the builder through any legal disputes arising anytime during the acquisition of land up to handing over of the property to the customers and even beyond.
7.The Supervision :
This decision is related to how the construction is going to be supervised for Quality ,Quantity and delivery ?
There are several options :
1.Builder deploys his own employees for supervision.
2.Builder appoints PMC [ project Management consultant ] for supervision.
3. An experienced engineer is given the contract of entire supervision on % basis.
Summary :
The real success of the construction project ,like every other venture depends upon the formation of an effective team.
It is prudential to spend enough time and diligence to hand pick the team members. 
Better to aim for a long term association .

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