Olimosize Project Management

10 Lessons – Part 7 – Quality Checks

10 Lessons - Part 7 - Quality Checks

Hi, and welcome back to part 7 in our 10 part article series on the 10 things I have learnt about property development, while navigating construction and property investing in South Africa.

For this article I want to touch on the importance of checking your builders' work, or getting a professional to assist you to do so. It's only with checking in often, that you are able to catch the problems early, and then resolve them before they become too costly, or worse be non-conformant to the building code. Contractors and builders take short-cuts, and it is up to you to ensure that the builder is producing good quality work.

Have you ever walked into a bathroom, and there is something very obviously wrong, like the bath is placed along the wrong wall. Or the brand new kitchen counter top has been placed with the sink hole cut out in completely the wrong position. When these things happen the contractor may first try to deny there is a problem, but when they finally agree there is an issue, it is generally followed by the words, "its going to cost this much extra to fix the problem that we've just created."

The point is to not be shy and check in on the contractor often, unless there's a professional assisting to manage the project on your behalf (like me), its up to you to make sure that builder is building an investment to be proud of.

Being able to read the building plans, and making sure the builder can read building plans, is crucial, because when the error can be shown to the builder off the plan, it's less likely that there will be a dispute over the claim and, he would be required to repair that work at his own cost, as it is his fault. Generally, the smaller the builder being used for the project, the more effort will have to put into checking their quality and pace of work. Make sure it is made known upfront that any incorrect work will have to be redone at their own cost. It's been my experience that no matter the size of the project, many builders will often make assumptions, based on past work experience, to complete the build. That is to say that they might build "how they know how to build", which is not necessarily correctly, or to the specification provided by the building code or professional architect or engineer. Even on multi-million rand projects, contractors are found to not follow with the specifications and drawings provided, and it ends up costing the project, client and the contractor due to the cost of the remedial work required.

In my work I have seen examples of this, such as where a lady trusted her friend the builder to build a set of flats on the back of her yard. He started to build the flats and got up to roof height when he suddenly stopped building and disappeared with all of her money. She called us in as professionals to get advice on how to complete the project, but we could not give her good news. First of all there were no building plans, and secondly from the moment we looked at the building work that had already been done, we could see there were problems with the construction as the walls were already starting to form massive structural cracks. The building would have to be completely demolished and redone. She had lost all of her money..

An individual property investor generally does not have knowledge of all of the construction processes required to bring a development project into reality, especially when it comes to undertaking the correct checks and measures. The bigger the development, the more professionals need to be involved to make sure the project runs to plan, specification and within budget. We only know what we know, don't get caught out with things at the last minute because of not getting the right advice and assistance.

There you have it, part 7 of the 10 lessons I have learnt about developing property through being a project manager. I hope that you have gained some insight from this article that will help you to make more informed decisions on your next building project.

Be sure and keep an eye out for my next articles on the remaining lessons, and leave a comment with any questions or topics you would most like to hear about next. You can also sign up to our mailing list and receive our articles direct in your inbox so you never have to miss an issue.

10 Lessons – Part 6 – Drawings

10 Lessons - Part 6 - Drawings

Hi, and welcome back to part 6 in our 10 part article series on the 10 things I have learnt about property development, while navigating construction and property investing in South Africa.

For this article I would like to talk about building plan drawings. If you are building a new building, extending onto an existing building or adding a back yard structure to your property, you need to submit building plan drawings to council for approval. I spoke about the importance of having these plans in my 1st article on paperwork, and here I will delve a little deeper into the information included on, and requirements to obtain approval for, your drawings.

According to SANS10400 Building Regulations for South Africa, permission is required to build any structure, even if it is classified as "Minor Building Work", which renovations and the like are generally considered as. This is a big topic of debate and essentially means that a Site Development Plan (SDP) should be submitted for every type of building, addition or external renovation that may be envisioned for the property. Most people would probably tell you that's not the case, but the only way to get permission is to submit a plan for scrutiny by the various municipal departments, on which they will provide comments on the proposed improvements. This for example would quickly show if there are any boundary or servitude problems with the proposed position of the building. To be clear, you don't have to submit building plans for minor building work like renovations (internally), but bigger structures like garages, cottages, swimming pools etc., do need building plans submitted. General rule of thumb is If there is a foundation, it must have a building plan.

To submit an SDP to Council for approval, you need a plan that is drawn and signed by a registered architect. To submit building plans to Council for approval, you must have an architect and structural engineer sign off on the drawings, as they will be held responsible for the overall design and safety, should the building fail in any way.

To make a good deal with a property, it is important that all of the correct drawings and approvals are in place. Be sure to get the approvals that are needed to succeed from the very beginning, because it is those things, when left unresolved, that trip deals up when it comes time to resell the property. .

One last comment on drawings, as individuals you should aim to learn to understand the detail in the architects drawing and what has been included on the drawing. By this I mean, are they standard windows and frames, did he allow for recessed lights or hanging pendants. It is important to understand this so that there aren't some nasty cost surprises because the price difference between one size of item and another can be significant, and equally so when it’s a question of quantity. Knowing what is on the drawing means being able to double check the builders quote that he isn't charging for obvious extra items. I'm also not insisting on having an in depth knowledge of reading drawings and all of the technical information on it, but simply to understand the basic symbols and measures used, to not get ripped off.

There you have it, part 6 of the 10 lessons I have learnt about developing property through being a project manager. I hope that you have gained some insight from this article that will help you to make more informed decisions on your next building project.

10 Lessons – Part 5 – Building Condition

10 Lessons - Part 5 - Building Condition

Hi, and welcome back to part 5 in our 10 part article series on the 10 things I have learnt about property development, while navigating construction and property investing in South Africa..

In this lesson I want to touch on a few items that relate to properties already developed with buildings, and why it is important to know what the overall condition of the building is, for example if there are any hidden or unknown issues, such as damp or rotting roof trusses on the building and what you can do about it..

No matter the property type, residential, commercial office block, retail mall, it is recommended to get a building condition inspection done. A building condition Assessment will inform of any potential problems and costs, that might be encountered down the line. Buildings of a certain value may, in addition to the normal requirements, have a Building Condition Assessment as a requirement for financing the purchase. .

A building condition assessment will check the exterior site and grounds for signs of maintenance; the structure for major cracks and the source of these; the building exterior for any structural and finishing issues; the building interior for any finishing issues; the mechanical systems, such as plumbing and air-conditioning, for the current condition and expected time to replace these at the end of their useful life span; and finally for regulatory compliance to check the safety, compliance and functionality of the systems to ensure that the building has been built to regulation code.

Let me explain why this is so important. Unknown or undeclared defects and problems will soon enough cost money to repair and is not something a new property owner wants to land up with, especially if it is a big problem like rising damp. But, similarly, there may be features and fixtures on a property that increase its equity value. With a formal building condition assessment, these costs and features are clearly identified and listed, which makes a good case for obtaining a lower purchase price on the property due to the amount of repair works required, or as support for financing due to the higher equity that can be realized.

It should be noted here that with the release of the Property Practitioners Act no 22 of 2019, persons selling a property are legally required to provide a signed disclosure document listing all of the defect items that they are aware of. This is to ensure that the buyer is not left with a surprise discovery and bill to replace something major just after they took possession. However, people only know what they know, and if the owner doesn't know of a defect, they will not be able to disclose it, which is why it is recommended that you get a professional to check and provide a formal building condition report..

Again, I cannot stress this point enough, make sure that you find out everything about the property and land before making a final commitment, it usually saves you a lot of money in the long run.

There you have it, part 5 of the 10 lessons I have learnt about developing property through being a project manager. I hope that you have gained some insight from this article that will help you to make more informed decisions on your next building project.

10 Lessons – Part 1 – Paperwork

10 Lessons - Part 1 - Paperwork

Hi, I'm Marie and I'm a Construction Project Manager by profession, and in this 10 part article series, I will share with you the 10 things I have learnt about property development, while navigating the construction of buildings in the South African climate, and that have helped to make my property development journey easier, and hopefully yours too.

I've been involved in the construction industry for the last 10 years and a property investor for 4 years, but I still consider myself to be learning the ropes, as there are always things that can catch you out. So, if your building project or development is big or small, the principles set out here are similar for their execution.

Before we get started, in these articles we're not talking about how to invest in property or how to find a good deal. We're talking about the things that can, and all too often do, catch us out on a building or development project, and all the wonderful things that happen when you've all but signed on the Offer To Purchase dotted line, and you are itching to start building your dreams.

Let's get started!

Part of any good property investment is doing your due diligence, and that entails finding out everything that you can about the property you want to buy. When you are looking to further develop the property by adding buildings or structures, you need to know what has been done there before, and what you are allowed to do now. Always ask for copies of the approved council building plans from the agent / owner. These plans will tell you if the buildings were correctly and legally built to begin with, and you will need them if you want to submit new building plans for any alterations you want to do.

Another handy piece of paperwork to have is the Zoning certificate for the property. This certificate will tell you to what height you can build on the property, how much of the ground can be built on, the types of buildings allowed, the maximum size of the building that is allowed and any other restrictions that there may be on the property.

Let me give you an example.

The property you are interested in buying is in a prime location, a great plot of land with a 3 bed house, and some townhouse units on it, and space for a few more. You are banking on this being an investment that will be able to earn you income fast, its perfect. You've got the existing building plans and your dreams are alive. Emotions run high, it’s the best deal! You sign on the dotted line. No suspensive clauses, and you are locked in. You start to look at the development and are advised that the plan copies that you have are in fact not approved, and an entire set of building plans would need to be submitted for your new townhouse units and the ones that were already there! But the implications of this don't stop there, if there are no approved building plans, how do you know that the buildings were in fact built to any kind of regulatory or engineering check? That they are approved in terms of the city land use scheme? How do you know they are safe to live in? Implications of these items would require specialist studies to be done to check, and will cost a lot of money to resolve.

These two pieces of paperwork are probably the most essential in your pack, especially if you intend to make alterations to the buildings or further develop the property as part of your investment strategy.

There you have it, part 1 of the 10 lessons I have learnt about developing property through being a project manager. I hope that you have gained some insight from this article that will help you to make more informed decisions on your next building project.