Effective Real Estate Project Management Needs Option from Original Platform

Some operational issues that are closely related to the initial project development may include: 

First, traffic in the building, including vertical and horizontal axis traffic, is unreasonable, causing conflicts and difficulties for groups with different purposes of moving in the building. Moreover, the installation or use of devices to divert and guide traffic is unreasonable, potentially risking safety. 

Next, the use of power lines and equipment is not appropriate. In particular, the project may lack functional rooms, necessary equipment, use of inadequate materials, trees or furniture, and there are no strict early divisions among groups of project users, and rights, obligations, and responsibilities among owners in the complexes have not been separated. This will also cause difficulties in future operations and maintenance. The design also needs attention, as designs that do not meet the standards, do not conform to the size and capacity of the project will pose a high risk to residents or tenants, making the operation difficult.  

Several other issues, which are common and at the same time related to unclear project internal rules, are not detailed enough to serve as a basis for implementation. In the case of apartment projects, many investors use the form in the relevant legal documents. However, if this rule is not refined according to the project specifications, it will lack practicality, not clearly specify the direction to solve the problem. Furthermore, existing regulations often provide for things that are done or not done but lack specific sanctions.

Many projects have difficulty managing operating costs. From the time of initial development, the project did not fully consider the operating factors when calculating the costs included in the Buying and Selling Contract, resulting in a lack of operating funds later, not even considering various financial scenarios to prepare a reasonable cash flow. The reason may be that the development unit has not closely followed the continuous changes in the market, laws, tax policies, financial models and financial situation, etc. to consider the appropriate financial solution for operating and maintenance costs. In particular, for complex projects, the story may be that the investor has not envisioned, established and agreed upon the financial obligations of the owners.

In addition, the accurate calculation of operational preparation costs, operational costs of the project, cost allocation models, scenarios and financial models of the project should also be kept in mind. At the same time, the analysis of ownership areas in the project is also an issue to be considered from the beginning when submitting the Master Plan. Classification of ownership areas for clarity on the shared - private ownership area includes: State-owned area, project-wide joint ownership area, TTTM private ownership (if any), apartment-specific ownership, office-specific ownership. Investors need to know how many types of ownership will be in the project, whose location and equipment in the building is owned, used by whom and managed by whom. In addition, it is important to know who or whose responsibility the revenue or expenses in the operation process will need to be. This can be easily handled through the steps of identifying and encoding drawings by type of area owned. Proposing rights and obligations of individual owners for each type of ownership area and developing a set of rules in line with the project design and nature are important solutions
The calculation and consideration of operating options at the time the new project was conceived are key to minimizing the issues of dispute after the project was put into operation. Furthermore, the management unit's management capacity and operational experience are considered to be the main factors in real estate management and utilization, due to the direct impact on the quality of life of residents, visitors or project tenants. Therefore, it is first necessary to find a professional, qualified management unit and let them participate early from the first steps when developing a project plan to ensure thorough case calculation, maintain transparency and minimize the risks required after the project is put into operation. This is meaningful for the effectiveness of the project, from the space utilization side to operation, ensuring financial stability, risk management and increasing experience for future tenants and tenants. From there, it guarantees, even increases the value of real estate projects, whether they are housing or commercial projects.

 

Source: Collection