Property Development Forum

Property Development Forum is a website where property development industry experts are contributing short, sharp and concise articles on various facets of the property development industry.

Subjects covered include:

• Accounting for development industry
• Software for the development industry
• Architecture
• Risk management
• Property investment
• Contamination and environmental controls
• Career development
• Planning and construction law
• Fire engineering
• Urban planning
• Sales and marketing
• Infrastructure
• Demolition
• Recruitment
• Telecommunications
• Aged care
• Importing goods from China

Visit Property Development Forum by clicking HERE.

LEFTA is proud to be the convenor of Property Development Forum.

property development forum | www.propertydevelopmentforum.com

property development forum | www.propertydevelopmentforum.com

Three things to know about building disputes and one tip that might just save you millions!

I have just written an article for Property Development Forum titled:

“Three things to know about building disputes and one tip that might just save you millions” which you can read by clicking on the following link.

http://www.propertydevelopmentforum.com/three-things-to-know-about-building-disputes-and-one-tip-that-might-just-save-you-millions/#.UdGMTzt1rsY

Steve Chandler

Property Development Forum is now LIVE!

Property Development Forum has now gone live. Property Development Forum is a collaboration of property development industry experts sharing their knowledge at no cost to readers.

We are proud to say that LEFTA are the convenor of Property Development Forum.

Please visit www.propertydevelopmentforum.com

Property Development Forum

Property Development Forum is a community of property development related experts who will contribute articles to the Forum free of charge for any reader to view (yes, no charge).

Our website launches on 1 Jy 2013.

Join our LinkedIn Group. Search "Property Development Forum" in the groups area.

Like us on Facebook http://www.facebook.com/propertydevelopmentforum 

Property Development Forum

Property Development Forum is a community of property development related experts sharing innovative ideas and knowledge to help create successful people and projects.

http://www.facebook.com/propertydevelopmentforum

PPP and Strategic Alliances

Continuing the series of blogs on various forms of building contracts, today's topic is "Public Private Partnerships" and "Strategic Alliance" contracts.

Public Private Partnerships, also known as PPP's occur where one party owns a parcel of land and desires to have a specific facility constructed for them. The other party develops and maintains the facility over an agreed period of time whilst the first party operates within the facility. The second party is paid an annual fee for the facility. At the end of the term of the contract the facility reverts to the ownership of the first party.

Government are users of this form of contract as they do not need to find the capital to undertake the development or maintenance of the facility, they only need to pay an annual fee and will obtain an asset at the end of the contract term. Of course the value of the development and the end value of the asset being handed back to the first party are calculated by the development party when tendering on the project and are included in the annual fee payments.

Strategic Alliances are also favoured by government when there are projects that need to be delivered in a timely manner.

These types of contracts are, as the name suggests, an alliance between a client and a contractor where both parties come together to deliver a project jointly. The client party has a project that they need delivered for a budget value. The contractor party joins forces with the client party to create a team that will design and deliver the project for the agreed budget.

The parties work together to achieve the outcome. The contractor party is paid all its costs plus a margin or fee. The intention of these forms of contract are to bring together the expertise of the client team, the design team and the contractor team to ensure a timely and cost effective project delivery.

Trust is critical to the success of these forms of contract. Without trust a strategic alliance cannot succeed. 

Quite often there is a profit share and a loss sharing provision in these contracts. Where the budget is achieved and a saving made, the contractor may receive half of the saving. Where the budget is exceeded, the contractor may share half of the loss, but most likely only up to the value of their margin or fee. In effect, if there is a cost blowout the contractor may undertake the project for nothing.

This blog concludes the series on the various forms of construction contracts. In upcoming posts I will discuss various property development related issues.

For more information on PPP or Strategic Alliances please visit the LEFTA Website