Project Management Services

Development Advisors, LLC (Developco) offers the following A to Z services:

Project Definition

General Objectives

  1. Review your Investment Objectives or your organization’s Business Plan.
  2. Set your project Goals (timing, staffing, principal involvement, communications).
  3. Discuss desired Property Features (function, size or # persons, shape, # floors, image, look, general interior layout, etc.).
  4. Establish Building and/or Site Criteria (location, visibility, access, zoning, parking, loading, topography, etc.).
  5. Discuss your Budget (total project costs, annual mortgage or lease payments, payment of operating expenses, FF&E, etc.).
  6. Discuss Funding (initial up front pre-construction costs, available equity capital, possible debt resources, etc.).

Investment Objectives

  1. Decide Ownership (type of legal ownership entity).
  2. Establish investment Criteria (Hold Period, Exit Strategy, Return-on-Investment, Tax Needs, etc.)
  3. Establish investment Measurements (Cash-on-Cash yield, IRR) that you desire.

Financial Modeling

  • Create project cost budget including property acquisition, soft costs, hard costs, outfitting (FF&E) costs and financing costs.
  • Create pro-forma scenarios incorporating project budget and proposed lease rates to evaluate likely profit and rates of return (cash-on-cash, IRR, debt reduction).

Property Acquisition - Existing Building or Land

Site Selection

  • Identify, Evaluate, Negotiate and eventually Consummate the purchase of the property. Developco will lead or can support the efforts of your chosen broker. Mr. Scott McLean is a licensed broker in the State of Colorado and has executed hundreds of commercial property transactions since 1984.

Site Test Fit

  • Create a Concept Plan for the proposed existing building or land site to determine its usability. For an existing building, we try to utilize as much of existing installations as possible but still create a state-of-the art result. For an undeveloped land site, we look at the siting of the building, traffic impacts, accessibility, storm drainage, grading, etc. to ascertain the viability of the proposed site.

Site Cost Analysis

  • Consider every cost to prepared a “finished pad” ready to construct vertical improvements upon. Developco considers all the potential horizontal costs. Beware of inexpensive land!

Due Diligence

  • Developco orchestrates the entire purchase Due Diligence process starting with an understanding of the allowed land uses (zoning). For an existing building, this include all major systems of the building (roof, parking lot, mechanical, electrical, plumbing, structural). For land, it includes inspections for environmental, soils, title, survey, utilities, etc including meeting with the municipality to understand the requirements to develop from the ground up.

Team Selection

The key to a successful project is the selection of a cohesive team. Developco leads the procurement of the most capable professionals including the project architect, general contractor, civil engineer, and others.

Point Person

Along with Developco, you'll need a point person who Developco can collaborate with. We strongly recommend someone with decision power, good people skills and someone who likes solving problems! If this is your first time, be aware that the project will take substantial time away from one's primary organizational responsibilities.

Architect & Engineers

Developco leads the effort to select preferred and pre-qualified A&E professionals. By using a competitive process, you'll discover recent similar projects and obtain new concept ideas. Developco analyzes, then compare proposals allowing you to make an informed final selection...then let the fun begin!

  • Developco helps you determine qualified firms, conduct RFP process and interviews, check references and tour work examples.
  • In tandem with your legal counsel, Developco negotiates the service agreement.

Construction Contractor

Developco leads the selection process for for a general contractor (GC). It is in your best interest to have the GC on board early to suggest construction methods, to provide cost saving ideas and to provide cost estimates. We rarely recommend that you wait for the completion of documents before engaging a GC. Developco leads in negotiating construction services that represent current market conditions for overhead, profit and general conditions.

  • Determine qualified firms, conduct RFP process and interviews, check references and tour work examples.
  • Determine most appropriate delivery method (CMGC, Design/Bid/Build, Design/Build, CMaR).
  • Select standard AIA contract and negotiate criteria (fees, general conditions, overhead, incentives, penalties, GMP, etc.). Note: Often a pre-negotiated approach with a GC, in which self-performed tasks are identified and subcontractor bidding processes are established, can result in a more favorable outcome.

Select Supporting Sub-Trades

  • Building Inspector (for Due Diligence)
  • Civil Engineering (Grading, Drainage, Site Plan);
  • Geotechnical Engineering (Soils and Materials Testing);
  • Structural Engineering (generally will work for architect);
  • Mechanical, Electrical, Plumbing Engineering.

Additional Selections (as necessary)

  • Interior Design (make this place like home-you’re there enough!);
  • Landscape Design (frequently overlooked and under-installed);
  • Attorney (specialists: land use, contracting, etc.—depending on needs);
  • Land Use specialist (if necessary to rezone property-someone already connected in the municipality);
  • Acoustical Engineering (especially for assembly venues like auditoriums);
  • Public Relations specialist (if necessary for zoning changes);
  • Urban Planner (if necessary to help incorporate building into neighborhood or for planning multiple buildings);
  • Financing Broker (if necessary, someone to procure financing);
  • Accountant (if necessary for tax planning, entity creation, bookkeeping);
  • Market Analyst (if necessary to ascertain market conditions to insure realistic pro-forma forecasting).

Scheduling

Developco creates and periodically updates the overall master project schedule from your vision through your occupancy. This considers every aspect of the project including visioning, initial planning, resource procurement, real estate selection, team selection, financing, design, entitlements, construction, outfitting and project close-out — from A-Z.

Municipal Management

Developco leads the interaction and negotiations with municipal officials pertaining to the requirements necessary to gain approval to begin construction (commonly referred to as “entitlements”) as shown below.

Rezoning

In the event that the preferred land site does not allow for your intended use, Developco will lead the effort to rezone the property. This can take from 12-18 months. Changing a site’s designated use can be both time consuming and costly and should NOT be entered into without carefully ascertaining the potential for success.

Entitlements

Once you are certain your proposed use could be permitted, the following are generally routine parts of the development process.

  • Platting (estimated 3-6 months)
  • Development Plan Approval (estimated 4-10 months)
  • Building Permitting (estimated 1-2 months)

Documentation

In cooperation with your legal counsel, Developco reviews and negotiates all associated contracts and agreements, including but not limited to:

  • Entity creation for property ownership;
  • Property acquisition;
  • Municipal entitlements;
  • Property lease w/ new ownership entity;
  • Professional contracts including design, engineering and construction;
  • Loan arrangement documentation;
  • Listing new surplus space for lease; and
  • Property management (if necessary).

Building Concepts

Developco helps take your new vision and conceptually articulate the a future property program (building size, elevation look, general interior layout, needed parking, etc.). This property program starts with your investment objectives or your organization’s mission statement, business plan, and best practices for your business to achieve maximum effectiveness and/or profitability. As part of this process, we orchestrate the following:

  • Tour pre-selected buildings in the metro area (similarly functioning buildings).
  • Advance general wants and needs for the proposed new building size, interior configuration, location on the site, and exterior look including skin materials, landscaping, parking, entry features, windows, elevators, floor loading, interior finishes (doors, lighting, grid, ceiling tiles, carpet, etc.), HVAC, electrical, telecommunications and security.
  • Conduct a collaborative conceptual design process with the selected architect and the major sub-trades (mechanical, electrical, plumbing, structural) in a brainstorming all-day session that is highly controlled. This allows architect, engineers, construction persons, key subcontractors and you, the owner, to resolve most design issues in one day; helps to “set” the budget and value engineers to reduce costs to a reasonable target budget. In the course of this planning exercise, consider:
    • interior design (floorplate, bay depth, core, vertical transportation, HVAC, ceiling, lighting, lobby, amenities, materials, etc.).
    • off-site issues (mandated by municipality and/or referring agencies).
    • exterior design (structural and electrical selection, skin materials selection, roof design, windows, loading, parking, landscaping, signage, etc.).

Design & Engineering

Developco is responsible for managing and coordinating the A&E professionals, making recommendations, and helping you make the right decisions so that the process consistently moves smoothly forward towards a timely completion.

The design of the new building consists of the following stages:

  • Initial Concept;
  • Code Study (for an existing building- determines what components don't meet code);
  • Schematic Design Phase (affirming the Concept);
  • Design Development Phase (DD’s);
  • Construction/Contract Documents Phase (CD’s);
  • Negotiate Guaranteed Maximum Price (GMP) with Contractor;
  • Building Permit Negotiation / Approval.

Construction Budgeting

Prior to construction and during each of the design phases, Developco, along with the GC, will assist with the following:

  • Obtaining construction cost estimates that get increasingly more accurate with each iteration.
  • Lead the process of “value engineering” to consider alternative construction methods and materials to improve or reduce project costs.

Debt Financing

  • If desired, Developco leads you through a process to Identify, Evaluate, Negotiate and Consummate a construction loan and/or a permanent loan.
  • Developco leads the effort to identify and solicit lender candidates (as your advocate), then stays involved through the commitment, documentation, due diligence, loan closing and loan disbursement process.
  • Developco assists Client with preparing its loan package, starting with information provided in the Project Definition phase (above) and supplemented with additional information that lenders will need to get comfortable with and to qualify you for future construction and/or permanent debt resources. Such supplemental information shall include historical data, project data, financial data, staff data, product and competition data, and risk data.
  • Developco never represents the lender. Instead, Developco represents and advocates for you through loan origination and throughout the project.

Financial Management

Developco manages all financial aspects of your project using our proprietary Total Project Budget, Cash Flow, Cost Tracking and 5-Year Operating Projections.

Total Project Budget.  Developco routinely updates all Project costs—soft costs, hard costs, financing costs and FF&E (also known as outfitting) costs.

Cash Flow.  Developco creates a monthly cash flow projection showing the timing of cost outflows (predicted expenditures) that informs when cash inflows will need to be received.

Cost Tracking.  Developco tracks all project costs, expenditures, remaining amounts and possible future changes for the current point in time.

5-Year Operating Projections.  Developco helps you create a 5-year income & expense projections using our proprietary “Income Projections” excel spreadsheet that informs our client of its future operating revenues, future expenses and the corresponding debt that it can afford.

Payment Processing.  Developco manages all invoicing, lender inspections, and payment processes. Each month, the invoices are assembled, the work-in-place is confirmed, and a draw request is sent to a disbursing agent, either the lender or perhaps a title company, who disperses the checks. Developco ensures conditional lien releases are provided at the time of invoicing, and unconditional lien releases are provided upon receipt of payment.

Lender Inspections.  Instead of a hiring a third-party inspector, Developco can provide the inspection required by the lender or disbursing agent which will save thousands of dollars. In this role, Developco confirms that the work being requisitioned for payment has been completed by providing copies of weekly construction meeting minutes, pictures, sign-offs on the appropriate AIA form (if required), and an updated Total Project Budget and Cost Tracking report analyzing the status of expenditures versus budget.

Construction Management

Developco acts as your project manager advocating your interests towards our mutual goal of completing the new space (tenant improvements, renovation or ground-up) on-time and in-budget. Developco works closely with the GC to track construction progress, to resolve unforeseen obstacles, to help you make decisions affecting the cost and quality of your new space or building. Developco provides the following services:

  1. Attend periodic construction meetings with you as owner, Architect and GC (OAC);
  2. Conduct periodic field inspections to advise you on progress and on issues of concern;
  3. Monitor project schedule, overall project budget, cash flow models and provide routine reporting to you and to your lender;
  4. Review all RFI’s (request for information), PR’s (proposal requests), and Change Orders presented by the general contractor and make recommendations to you on to how to proceed;
  5. Provide periodic construction inspections (once or twice a week depending on the level of construction) as well as managing third party inspection consultants such as a materials testing engineers, geotechnical engineers, lender inspectors, etc;
  6. Interface with the various municipalities – City/County, Master Community.
  7. Interface with Utility Providers including for gas, electric, water, communications and coordinate installations, inspections, special permits, fee payments and final acceptance;
  8. Manage third party materials testing to assure the required quality control of GC installed components (soils compaction, concrete, steel, etc. as needed);
  9. Coordinate with GC for the installation of all owner furniture, fixtures and equipment (FF&E), including if needed all audio, visual, lighting (AVL), cabling, security, acoustical installations, appliances, window coverings, playground equipment, licensing requirements, etc;
  10. Prepare monthly payment request (invoices from all professionals and vendors) and update Cost Tracking spreadsheet that analyzes expenditures to allowable budget;
  11. Submit monthly draw request including backup documentation to your lender for payment;
  12. Conduct Punch List inspection with architect, GC and you prior to final sign-off;
  13. Determine how much retention should be held to the end of the project to ensure that the uncompleted items (punch-list) get completed;
  14. Arrange for commissioning and training of new equipment;
  15. Close-out the project and celebrate!

FF&E Installations

Developco leads the planning and procurement of furniture, fixtures and equipment (FF&E) in a process as follows:

  1. Inventory all existing FF&E that you intend to relocate to the new facility;
  2. Determine which FF&E needs to be upgraded or replaced (such as IT equipment);
  3. Estimate the desired future FF&E, create FF&E spreadsheet, estimate costs and create budget that syncs with overall budget;
  4. Research FF&E vendors, then arrange meetings with vendors to investigate, inspect and discuss alternatives. Request estimates of cost, refine scope, negotiate price, sync with budget and place order for delivery;
  5. Upon delivery, orchestrate the installation and/or set-up in cooperation with GC.

Property Management

Developco will help you establish a plan to manage your property that includes required annual inspections, quarterly service requirements, routine maintenance and seasonal activities.

  • Interview prospective property management firms or develop systems for in-house property management.
  • Develop budget, recommend vendors, etc.

Leasing Surplus Space

In the event you should construct a larger building resulting in unoccupied space, will assist creating a leasing and marketing program that you or a third-party real estate brokerage firm can implement to achieve income for your surplus space.

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