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MEMORISE Flashcards

1
Q

What 4 things must developers control 1 of?

A

Land
Capital
Knowledge
Tenants

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2
Q

What is the asset creation process?

A

A funnel of progressive refinement of risk with increasing detail whilst maintaining maximised value

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3
Q

What are the 3 simplified development process stages?

A

Budget
Commit
Construct

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4
Q

Describe stage 1

A

Initiation - inception of idea
Monitor markets
Spot opportunities

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5
Q

Describe stage 2

A

Concept - refinement of idea and indicative feasibility

Authority compliance scan
Cost estimate on area rates
Indicative feasibility
Indicative design and alternative options
Identify and discuss with prospective tenants
Masterplan for large sites
Market and other needs met
Understand site

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6
Q

Describe stage 3

A

Evaluation - detailed feasibility and preliminary design

Detailed feasibility study
Elemental cost estimates
Formal market study
Make go or no go decision
Negotiate terms with users
Preliminary design
Risk management considered
Start consultation
Understand RC requirements

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7
Q

Describe stage 4

A

Definition - developed design

Arrange financing
Building manager part of the team
Developed design
Detailed construction and project plan
Identify contractor
Lodge RC application
Refined cost for risk management
Set development parameters

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8
Q

How are construction estimates refined?

A
  1. very broad based on area rates
  2. cost range based on area rates
  3. accurate budget based on elemental measure
  4. more accurate based on elemental measure
  5. very accurate based on elemental measure
  6. almost final based on quotes
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9
Q

Describe stage 5

A

Approvals - contracting and working drawings

Building consent processed
Detailed plans for construction, safety and quality
Sign contracts
Working drawings

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10
Q

Describe stage 6

A

Contracting - delivery

Drawings approved for construction
Manage construction contract
Meet authority consents
Monitor market and feasibility
On site work
Plan for commissioning
Subcontractors tendered

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11
Q

Describe stage 7

A

Commissioning - completion and opening

Building manager/staff inductions
Building handover from contractor
Bedding down period before opening
Certifications for council sign off
Designers inspect completed work (remedial list)
Tenant fitout work starts

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12
Q

Describe stage 8

A

Asset management - ongoing to ensure best performance and maximum value

Review whether it meets expectations
Watch for opportunities to improve
Building manager role
Re-development audit

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13
Q

What is value management?

A

Gathering of key parties to go over requirements and solutions and of the development within each development stage

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14
Q

When are developments not suited for commercial assessment?

A
  1. Time required to complete occupancy
  2. Time required to get higher rent after refurbishment
  3. Time required to ramp up
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15
Q

What is on the bank finance checklist?

A

Approves contract, contractor, consultants
Appoints QS and valuer to check data
Tripartite deed
May require minimum 10% contingency
Use developer’s funds before bank’s
No side agreements affecting pre-sale values
Guarantees

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16
Q

What are common mistakes for new developers seeking finance?

A
  1. Low equity and underestimated costs
  2. Do everything themselves
  3. No true fixed price contracts
  4. Not maximising value from site
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17
Q

What are common public infrastructure costs?

A

Sewer/stormwater pipes
Road widening
Traffic lights
Acoustic barriers

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18
Q

How do you calculate development financing cost?

A

(design + development costs) * interest rate * design and construction period * 0.5

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19
Q

How do you calculate construction financing cost?

A

0.42 * construction cost * construction period * interest rate

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20
Q

What are the steps in an asset development audit?

A

Review tenant commitments
Consider new opportunities
Plan ahead to resign or replace tenant
Finish refurbishing before expiry

Identify gaps

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21
Q

What is the development concept?

A

Securing and identifying best use for land including design needs and solution

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22
Q

Why is the development concept important?

A

Bad design can add 10-20% to TPC
Lowering OPEX can increase rent
Flexibility for future change
Green for top rents

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23
Q

What are 6 best practice development concepts?

A

Masterplan
Multiple uses
Green
Cost effective design
Tenancy operationally cost effective
Operationally efficient services

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24
Q

What are attributes of premium developments?

A

Create benefits from problems or extra space
Foresee a change in the market
Partner with major tenant

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25
What does the RMA try to achieve?
A sustainable environment with minimised impact from a building on surrounding amenity
26
What is an integral requirement of urban design planning?
To positively relate to the surrounding land/community to the benefit of the area
27
Urban planning common outcomes for developments
Active street frontages with pedestrian focus Scale and quality of exteriors relate to pedestrians Mixed use requirements Public open space interaction Transport hierarchy
28
Urban planning common outcomes for cities
Less urban sprawl Excellent designs Green Amenity Transport hierarchy Safety
29
What do RC applications need to demonstrate?
Compliance with district schemes EIA - physical, operational, spiritual, visual, environmental Pro-active approach to consultation
30
What do development fees include?
Council staff costs Development fee Water and power Conditions - infrastructure, contamination removal
31
What is the route to consent?
1. Apply for LIM 2. Land RC 3. Building RC 4. Building consent (3-4 months) 5. Construction and inspections 6. Council checks conditions on completion 7. CCC (1-2 months) 8. Compliance schedule 9. Submit certification of checks from specialists 10. BWoF
32
How long does RC notifications take?
Non notified - 2-5 months Limited notification - 3-6 months Notified - 6-12 months + 1 month appeal
33
Asserting style
Direct, pressure Maintain control End strongly
34
Persuading style
Present both sides One clear proposal Repetition
35
Bridging style
Active listening Do not disagree Draw them out
36
Attracting style
Connect with values and goals Describe desired result
37
Presentation planning points
Plan ahead Consider desired objectives and audience Select media mix What to say, how to say it, actually say it
38
Environmental progress
Common for sustainable features and energy efficiency in CBD high rise No regulatory requirement Govt requirements Grade A tenants
39
Common developer risk mitigation
Pre leasing Pre selling Contractor takes risk Bond/guarantee against contractor Sunset clause
40
How are risks best handled?
Early recognition and progressive refinement Managed by those influencing them Risk Management Plan Profit provision
41
Pre construction risks and mitigation
Environment - expert consultants, conditional contracts Approvals - liaise with council Political - transparency Experience - good track records Market - evaluate location Feasibilities - reject marginal projects
42
Land risk measures
Buying above market - valuer Use restrictions - planner Building title restraints - land surveyor Ground conditions - geotech engineer Tangata Whenua concerns - consultation Environmental - environ engineer
43
Design risk measures
Does not meet objectives - understand Not best solution - review alternatives Does not work for all - consultation Tangata Whenua concerns - consultation Consenting - authority discussions
44
Building cost risk measures
Exchange rates - futures options Contractor defaults - bond/guarantee Inflation - fixed sum contract Not fit for purpose - good designs Completed building operating costs - PPP
45
Time, lease, sale measures
Running over time - review progress regularly Market changes - pre-lease/sell Tenant insolvency - rental guarantee bonds Buyer walks away - put option
46
Additional risk put on contractors
Manage designers Fixed price contract including meeting brief and consents
47
Additional risk put on contractors
Manage designers Fixed price contract including meeting brief and consents Fit for purpose Design risk to performance specs
48
Office building trends
Lower OPEX Non designated work stations - open plan, efficient use of space Occupant density Floor plates
49
Office buildings resulting attributes
Large floor plates Column free Green/efficient Located for workers Hotel like entry Flexibility
50
Non designated workstations best practice
Flexible spaces Collaboration Sociability and wellbeing
51
Implementing workplace change
Consultation early Mock up areas Workplace strategy consultant
52
How does PM Org work?
Stage 2 - agreement of service to progress design development and pre-agree to later contract Stage 3 - design advanced enough to price contract
53
What are the advantages and disadvantages of PM Org?
Single point accountability Overlap of design and construction Higher fees Relationship important
54
What are the advantages and disadvantages of D&C?
Single point accountability Overlap of design and construction Higher fees Simple projects
55
What are the advantages and disadvantages of PM consultant?
Skilled project manager Single point responsibility (not accountability) Risks still held by client
56
What are the advantages and disadvantages of tender traditional system by architect?
Low risk and little client involvement No overlap between design and construction
57
What is the current major project approach?
Indicative feasibility - engage designers Detailed feasibility - negotiate fees with consultants and include novation clauses Contractor appointment Construction - novate consultants (single point accountability)
58
Partnering
Overcome problems Focus on what each party does best Share resources Joint ownership of issues
59
Alliances
Long term Risks shared Contractors focus on innovation
60
Joint ventures
Project specific Assigns roles and allocates risk Single point accountability
61
What type of contract will developers seeking price comfort early in the development want?
D&C with more risk loaded on the contractor
62
Health sector
Master plan Mock up rooms High operating costs Fit for purpose Complex business needs
63
Hospitality sector
High operating costs Competitive Mock up rooms
64
Refurbishment challenges
Respecting tenant rights and communication Construction skills Compliance requirements Building development audit - scope
65
Tenancy management during refurbishment
Early consultation Lease obligations TMP - 3 levels of contact Contractor on board Understand operations
66
Retail development challenges
Long term planning Majors Programmes around trading cycles Tenant coordination Urban planning
67
Tenanting establishment process
Market research = area Tenant mix to match market Area of tenancy = target market turnover / optimum trading performance Rent = % of turnover
68
Tenancy guidelines
Fitout visuals Interior theme Signage Signs in development process for approval
69
Tenancy coordination process
Briefing meeting Concept design review Full concept design review Construction drawings review Construction

PROPERTY342 (21 decks)

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