A change order is an amendment to the construction plans after they have been finalized. This process can often lead to increased costs and timeline extensions.
A contractor is an individual or company that agrees to supply goods or services under a contract, usually related to the development or renovation of a property. Contractors play essential roles in various aspects of construction projects, such as landscaping, carpentry, plumbing, and architecture.
Cost estimating in construction involves predicting the total costs of labor, materials, capital, and professional fees required to construct a proposed project.
Development refers to the process of adding improvements to a parcel of land, which can include drainage, utilities, subdividing, access, and buildings. It encompasses all activities from the preparation of detailed plans to securing government permits and the actual construction.
Direct costs are expenses that are readily identifiable in the construction of real estate, including labor, materials, and contractor’s overhead and profit. These are contrasted with indirect costs, which include expenses like architect’s fees and interest during construction.
A fixed bid is an estimated cost, based on plans and specifications, that also stands as the actual cost of the job, regardless of any fluctuations in the actual cost of materials and labor.
A general contractor is a professional responsible for overseeing the construction of buildings or other improvements for owners or developers, often coordinating the work of various subcontractors.
Indirect costs, also known as soft costs, refer to expenses that are not directly associated with the physical building structure but are incurred during the construction period.
Milking a project, also known as bleeding a project, refers to the extraction of financial resources or benefits from a real estate project without reinvesting or contributing towards its development and sustainability.
The preplanning stage of real estate development involves seeking financing and obtaining government approvals prior to beginning architectural drawings.
A punch list is an enumeration of items requiring correction prior to the completion or sale of a construction project. It ensures all agreed-upon work is finished to satisfactory standards.
A Request for Proposal (RFP) is a document that solicits proposal, often through a bidding process, by an organization interested in procurement of a commodity, service, or valuable asset. The RFP process is intended to identify the best offerings and providers.
A strong track record can significantly influence a developer's ability to secure financing and attract investors for new projects, ensuring successful and timely project completion.
