- The permissive path: the composition and timing of obtaining a construction permit and putting the facility into operation.
- Availability of engineering: access to the site, connection to water, electricity and sewerage, the actual capacity of the networks.
- Geology and site risks: topography, soils, risk of flooding and landslides that affect the cost of construction.
We are checking whether it is possible to build and legally operate the planned facility on the site and under what conditions.
Permits, engineering, and terms of the deal
- Purity of the title: verification of the certificate in the land registry, the history of transfers, absence of liens, encumbrances and legal disputes.
- Overlapping and customary (community) rights to the land that can challenge the deal.
- Zoning compliance: the permitted use and access of the site to the desired functional area.
- Building parameters: maximum density, building coefficient, height, proportion of landscaping, margins from roads, reservoirs and shoreline.
Land rights and town-planning status
Stage 01.Earth
The project goes through four stages. Each sets a frame for the next one.
Stage 02. Pre-development
We calculate the economics of the project and form a sound concept even before the design begins.
- The composition and areas of functional areas for the type of facility: accommodation, retail, restaurant, wellness and service functions, public and auxiliary areas.
- Scenario analysis for each zone: layout, cost of creation, revenue and operating costs for different management models (own operation, outsourcing, hybrid).
- Choosing a configuration with maximum profitability at controlled costs.
- The result: the approved composition and area of the zones, justified by the financial model.
Product Configuration
- Capital expenditures by zones, stages, engineering systems and equipment.
- Operating costs in the following areas: management model, staff, taxes.
- Revenue for each revenue center (composition depends on the type of facility): load or throughput, average receipt, seasonality, growth dynamics.
- Indicators: ROI, payback period, break-even point.
- Stress test: basic, conservative, optimistic scenarios.
- Cash flow from the start of construction to the launch
The financial model
- The model captures what is cost-effective: which areas and functions are justified by profitability, which CAPEX is acceptable.
- The design assignment comes out of the model: the target cost of a meter, the share of total areas, and engineering requirements that affect OPEX.
- The architect does not get a blank slate, but a set economic framework.
Economics before Architecture
- Holding and operating companies, tax-burdened jurisdictions, money flows, and reporting.
- The cost of maintaining the structure, taking into account the residence of the beneficiaries.
- The terms of the development, the composition of the partners, the format and frequency of reporting to the investor.
Structuring
Estimated cost: from $20,000 to $60,000.*
Stage 03.
Development
Implementation of the approved model into an object.
- Combining architectural, structural, and engineering solutions into a single work project.
- Monitoring the compliance of the project with the approved configuration and the target cost per square meter. Optimization of decisions affecting capital and operating costs.
- Formation of a package for tenders and construction.
Design management
- Preparation of tender documentation on the types of work and supplies.
- Competitive selection of the general contractor, contractors and suppliers.
- Conclusion of contracts with fixed prices, terms and responsibilities.
- Formation of the schedule of work and payments.
Tenders and contracting
- Construction management and technical supervision: budget, timing and quality control.
- Work with changes, deviations, and claims during construction.
- Purchase and supply of equipment, furniture and equipment according to the composition and cost of the model.
- Commissioning of engineering systems and troubleshooting.
- Collection of executive documentation and obtaining an operating permit
Construction, configuration and commissioning
Estimated cost: from 18% to 22% of the project cost.*
Stage 04. Launch
Transfer of an object to a working business.
- Definition of the facility's operating model: lease, management company, or a combination of both.
- Selection of tenants or management companies for the concept and economy of the facility.
- Assessment of candidates' experience, reputation and financial stability.
- Coordination of commercial terms and distribution of responsibilities.
Selection of operators
- Preparation of tender documentation on the types of work and supplies.
- Competitive selection of the general contractor, contractors and suppliers.
- Conclusion of contracts with fixed prices, terms and responsibilities.
- Formation of the schedule of work and payments.
Standards and transfer of the facility
* The cost is calculated individually for the project. The numbers reflect the order