Pocket general contractor - a big risk for the developer

15.10.2012 12:30
Articles about real estate | Pocket general contractor - a big risk for the developer Is it worth a developer to create your own general contractor? If you have a lot of money. You chose to dedicate her life to devote himself to development and construction. You is a billion dollars, and you thought, 'Yeah, I'll just do it - buy land and build. "Then theoretically possible. But today, with the staff and the content structure problems, and therefore, there can be an embarrassing situation when one of the lines will fall apart.

In the history of our country, there are examples inability professionally by several directions. Such large companies as "Cocktail", "OK», «Spar» and others started in parallel with the food retail is engaged in development: buy land, borrow, hire people and then try to construct a building for themselves. The end result is they are distracted from the primary business, retail chain, hung a huge anchor in the form of service credits for development, plus the crisis has played a cruel joke with them. Today, real estate development company of almost all of these unprofitable. Although, if you separate the real estate development of the retail sector, the retail is a plus, and they would be able to further develop the food retail. But, nevertheless, they are pictured castles in the air and thought that all this grand volume can be realized. But alas, everyone should do their job.

Related article: How to improve the efficiency of sales department of a development company

The desire to combine the functions of the developer and general contractor can lead to a similar situation in which you like and paint beautiful vistas, but in fact reveals a lot of components, which are called in one word "risks" that will not give you the opportunity to develop fully, and real estate development and general contracting business organization. Therefore, I would still not risk. My advice is to follow the path of professional, more of a point of companies, each in a different direction, and find opportunity for dialogue. The dialogue is really difficult, but you need to understand the need to go to the next level: no mutual suspicions and accusations, and the level of trust that must grow every day, and then the market will develop more effectively.

Can I give you an example of effective integration of these two fundamental roles to be combined? The only company that today in Ukraine there was growth of customer service in the major general contractors with elements of development, is the "CAS", and that this is a unique situation: the confluence of political, financial, and personal qualities. The example today is very different. God forbid we have to go to such a situation.
Oleg Salmin, Director General, XXI Century
Content tags: Property Development
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