In our experience, whether building out our own project or selling a development site, the management of cost is key to achieving best value.
Often the poor relation to headline values, cost can significantly erode receipts if not properly managed.
If you plan to build out your own project, it is important that you plan properly and understand your exposure to costs. The process of construction involves overcoming unforeseen issues, and proper planning reduces this risk.
GSC Grays can analyse the costs which you anticipate on a project to ensure that the construction process is properly planned.
Most contracts for the sale of development land will allow the buyer to deduct abnormal costs and assess value on a residual basis.
Frequently, these costs are used to erode the purchase price either because the buyer is not incentivised to manage costs properly (because they are deductible) or they are used as part of the commercial negotiation.
At GSC Grays we have experienced staff who are familiar with site issues and residual appraisals. We offer a cost consultancy service which will interrogate the costs which are presented to establish whether they have been/will be properly incurred and if so, are appropriate.
The retrospective assessment of costs is far from ideal, and we are also able to offer a service acting for a seller where we will provide cost consultancy advice as the project develops. This is a far more effective way of managing cost.
If you are interested in any of the services above, please contact Calum Gillhespy or Chris Thyer.