You worry me......
$17m for 91 units in two towers...where you will lose lots of construction effiency?
I know its a fixed priced contract...Again - no such thing.
They always are at the beginning of the project.
15 months to build 91 units in two towers?
Joanna - what do you think of these numbers?
25% presales...without a CC? How does that work? What are people buying?
Do you have a draft strata yet you can post here?
Why dont either the builder or pm show anywhere on google?
Seeing as your posts end with an invitation to join your projects...what are the websites of your team so the forum can do some research?
Who is funding this...let me guess...not any of the majors?
I guess my concern is your posts invite novices to join you - you say all risk have been equated.
And simply - i guess i disagree.
Regards
Hi Tyron,
I agree with what you're saying. $17m to construct 91 units over 2 towers seems ultra light in my opinion (thats only $186,000 per unit, but I guess they could all be one bedroom units....which then raises other questions about target markets and the like). I would expect, taking into consideration parking, the large amounts of common areas and open space required, I would be budgeting at least $24m. Based on those figures my building should only be costing me around $7m..and we both know that that's not the case
I totally agree with your comments about a fixed price contract....contracts, whatever form they take, are not really worth the paper they're written on unfortunately...and even still....there are so many variables in the construction game that it's virtually impossible to have a fixed price contract....especially on a project so large.
And, 15 months to build....i highly doubt it. As you know, we're only doing 32 apartments plus commercial plus parking, and that alone is just about 15 months. In order to get that sort of time frame a developer would need to engage a real kick butt builder with a cast of thousands...but, without reading back, I thought he said 30 months...which may be more realistic.
I know a developer can have presales done without a CC...but 25% in 42 days...that's a hell of a lot of contra-deals that need to be done...I agree that at the very least a draft strata plan needs to be prepared first, and that in itself can take about 4 weeks to do.
I would be very concerned if anyone I knew were considering an investment.