It is common knowledge that you can make money when you purchase land or property with the intention of development, but the truth is that unless you have a project leader to closely manage the project you will never realise the full potential profit.
No matter whether you’re involved in a small building renovation, building your dream house or interested in a large property development, project management is essential!
Most people start off with the best intentions but then they become distracted by the daily activities in their life which impacts on the task at hand.
It takes determination, commitment and above all dedication to see a property management project through to its end.
Before undertaking any project, get clear your own timeframe and the reasons behind doing the project.
Why are you doing the project? Is it for money and financial freedom, is it to fulfil a dream to build your dream home, or maybe you want to secure a proper education for your children. Once you understand the reason WHY you can start working on the HOW to achieve it.
Most people are time poor and don’t have the necessary time and skills to ensure a successful property development project. Outsourcing the project management can be a great solution.
Project management is the application of processes, methods, knowledge, skills and experience to achieve the project objectives.
Any project is usually deemed to be a success if it achieves the objectives according to their acceptance criteria, within an agreed timescale and budget.
The core components of project management are:
- Defining the reason why you want to do a property development project, whether it is a simple renovation, building of a large house or a larger development.
- Determining upfront the timeframe. Time can cost you thousands of dollars!
- Capturing project requirements, specifying quality of the deliverables, estimating resources and timescales.
- Conducting extensive due diligence and financial feasibility to justify the investment.
- Securing funding for the project.
- Developing and implementing a management plan for the project.
- Leading and motivating the project delivery team.
- Managing the risks, issues and changes on the project.
- Monitoring progress against the project plan.
- Managing the project budget on a weekly basis.
- Maintaining communications with stakeholders and the project organization.