Project feasibility is vital.
We often get approached by people looking to do a project and the first question we ask is: “have you run some numbers and done a feasibility on the project?”
Funnily enough, what seems like a rudimentary thing you would do for a project sometimes gets overlooked. Don’t be afraid to say “I actually don’t have one and I don’t know how to put one together”. That’s some of the benefit that we can provide to people. Until you’ve actually lived and breathed project management, you don’t know what all the costs are, you don’t have the contacts, you don’t know what you should pay for the land, you don’t know what are some of the council contributions are, etc.
Anyone who has done a project will tell you that they spend a lot more money in certain areas they previously didn’t consider. It’s certainly important to have a feasibility and it must be robust. It’s better to load a project with some costs that you think you MIGHT need or some extra contingencies.
From our experience, once you’ve bought land or got an approval or set yield for a site, you can’t pull back those mistakes later on and unfortunately, if things look okay at the start they can look okay at the end but they can also look a lot worse. It’s very important as a developer to know your numbers.
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