8 minute read
Five crucial factors for cost-efficient developments
FIVE CRUCIAL FACTORS FOR
BUILDING COST-EFFICIENT DEVELOPMENTS
By Shaun Roos, MD: Longitude Developments
The biggest risk for prospective property developers is delivery, especially in current times, with the property sector having become substantially more cost-driven.
Even though diminished returns are predicted over the next five to 10 years, the need for property remains – people are still buying houses and apartments. In fact, the trends (in urban areas) show that consumers are searching for an upmarket aesthetic even when they do not necessarily have the means to purchase at that level.
The challenge (and opportunity), then, is for developers to bring the desired aesthetics to market, while still keeping their offering budget-friendly.
Here are a handful of ways in which we got it right at our new residential development, 73 on Grosvenor, 36 two-bedroom, two-bathroom residential development in the upmarket suburb of Bryanston, Johannesburg.
Build for the future
While cost and timeous delivery will always remain top of mind for us, building with sustainability in mind is a critical philosophy that must be applied from the design and planning stage right through to construction and delivery. We have chosen to embrace sustainability, longevity and efficiency in every aspect. This is nonnegotiable for us when bringing any new development to market.
With our roots on the costing side of the equation and a firm handle on what works in terms of design functionality and visual impact, we feel we are poised to thrive in the new construction climate.
Regardless of how much we expand over the years, our plan is to remain true to this “efficiency” philosophy so that we can deliver on each deadline. If you miss a deadline, credibility and trust are lost and once that happens in our game, you are done.
Identify the need
Coming from a quantity surveying background, we are often regarded with mild derision as the proverbial “bean-counters” of the construction industry, but it is the basic economics of supply and demand where everything starts – and ends. My years in the commercial construction sector have allowed me to refine cost models and resource output requirements in a way that makes the company not only price-efficient, but programme-efficient as well. We identified this particular property and really liked it in terms of the location in Bryanston, with a demand from the middle class and its proximity to amenities. Our
(Above left): Shaun Roos, managing director of Longitude Developments.
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aim was to bring a product to market that would give consumers real “bang for their buck”, offering them a beautiful, well-finished, modern apartment at a great price point.
Assemble the most efficient team
Property developers are really “just” big project managers, so we are heavily reliant on suppliers and sub-contractors. In mitigating the risk of timeous delivery, it is crucial to pick the right sub-contractors and specialists in various fields. In this regard, we would rather pay a premium to A-grade sub-contractors than take the chance of a sub-contractor not delivering and creating a bottleneck for everyone else, which will end up costing overtime and possibly irate customers down the line.
Smart material choice
It is important to understand the distinction between structural material – such as masonry, concrete, reinforcing and structural steel – and aesthetic material, ie finishes such as tile choices, ceilings, doors and the like. People do not see the structural integrity of the building; they see the softer finishes. We made very carefully considered choices with our building materials in every aspect, from the structure to the tiles, selecting clever, quality materials that could be installed at a good price. This enabled us to pass that saving on to the end user. In doing so, we managed to keep the aesthetic modern and contemporary at an affordable price through efficiency and smart choices, without any compromise to quality or structural integrity. We completed the project within six months (seven, if you factor in the demolition). This is unheard of, but we were able to do it because of partnering with the right professionals, being as efficient as possible and having a meticulous development and construction timeline and plan. To give you an idea, our teams only worked six Saturdays throughout those seven months and did no other overtime work. We simply did things carefully and methodically, planning well enough to ensure that no deadline was missed.
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