3 min.
Editorial Invest in Slovakia
If an investment plan comes to us asking for funding, we need to see clear timeframes for the implementation of the investment project up to the sale or lease. Depending on how the business plan is set up.
In most cases, we divide the investment plan timeline into 2 phases. The project phase and the implementation - construction part.
If the developer underestimates this part, it can significantly affect the timing of the entire project.
The construction of an investment plan is subject to an architectural study, planning permission, building permission, statements from various institutions and persons, such as: environment, transport, roads, electricity, gas, water, sewerage and other various parties who have the right to comment on your project. And believe me, there are a lot of them!
I probably couldn't even name them all. It is very much individual and dependent on the characteristics of the building.
For each investment project we need to know where your project is currently located and what the timeframes are for each procedure. And that goes all the way up to the building permit, which gives the project the green light. ✅
Personally, I think this design phase is far more time consuming than the actual implementation and construction.
The people in the team who are involved in the project phase are for me the key ingredient to a successful outcome.
Every single comment on a planning or building procedure can delay you for weeks or even months. ️ If this part is underestimated, it will significantly delay the implementation part, and this will hamper the cash flow of the whole project.
It is at this point that the ingredients are mixed and you need to find a good chef with a team of people who have experience and the right contacts.
Already, if the cake is properly mixed and put in the oven, I think you're 2/3 of the way there. You just have to wait until it's done.
So once again. How do we get the most realistic estimate for the design phase?
These are things that will be very helpful in verifying the timing of the design phase of an investment project.
The cake is in the oven. If the developer or the main investor obtains a building permit, the estimate of the construction work can be planned relatively accurately. Again, of course, it depends on the management that coordinates the individual professionals.
No, if the developer obtains all necessary permits, the building ️ nothing prevents it from growing at a consistent rate. Uncoordinated management, non-compliance with agreements with suppliers of works and poorly set cash flow can slow it down.
These are probably the most common problems in the construction phase. People and money. That is why it is very important for us who becomes the general contractor of the construction and how the cash flow of the main investor is set up.
If the lead investor has secured financing and an experienced construction contractor, there is a very strong presumption that the implementation schedule will be met and nothing will prevent the investment project from being successful.
We will write about cash-flow next time.
Just as it is important to plan a detailed timetable for the design phase, which is prone to delays, so is the cash-flow during implementation and construction.
Have a nice weekend and good luck on your passive income journey...
