Risk management planning is a key to successful property development. Risk Management, the science of analyzing the risk areas as they have the greatest impact allows property investors assign resources appropriately and/or assess feasibility of property development projects.
A clear understanding of the development process and the ability to quantify risk areas will provide investors with the competitive advantage they need to emerge from the pack in the new economy.
Listed below is an outline of the levels of risk management due diligence key to property development and property planning.
Level 1: Impacts Assessment
1.1 Industry Standards Assessment
Analytical assessment enables property owners to compare existing facilities with business and industry standards. The evaluation of industry standards can be used as a baseline for planning physical building projects.
1.2 Socioeconomic Impacts Assessment
Analytical assessment enables property owners to determine status of socioeconomic impacts on existing and planned future facilities with respect to changes in the business environment. The assessment can be used to help identify social, cultural and economic impacts for planning physical building projects.
1.3 Operational Needs Assessment
Inclusive process enables property owners to identify general business and operational needs which will be used as a baseline for planning physical building projects.
1.4 Condition Assessment (Existing Properties)
Enables existing property owners to better manage their facilities and establish budgets for maintenance and repair.
1.5 Identification of Strategic Planning Objectives
Enables owners to identify key programming needs as it relates to planning for future site and building projects.
Level 2: Concept Development
2.1 Conceptual Site/Campus Planning
Enables owners to assess investment risk based on how well the programmed site elements fit and function on the available site.
2.2 Conceptual Building Planning
Enables owners to assess investment risk based on how well the programmed building elements function in a basic building configuration as it is located on the proposed site.
2.3 Conceptual Phasing Plan
Enables owners to review long term and short term project phasing and the impacts on facility criteria such as operations, capital expense, projected business growth etc.
Level 3: Environmental Plan
3.1 Introduction to Sustainable Building Strategies
Enables property owners to consider different environmentally conscious planning strategies and assess impact on long term building costs.
3.2 Environmental Evaluation
Enables property owners to have conceptual environmental survey of existing facilities to be used as a reference point in future planning projects.
3.3 Sustainable Building Recommendations
Propose conceptual environmental building strategies appropriate as updates to the existing facilities.
Level 4: Risk Management Plan
4.1 Review of Surveys and Reports
Enables owners to have quick check technical evaluation of a site prior to investing extensive time or resources.
4.2 Zoning Analysis
Enables property owners to assess investment risk based on how well the proposed site plan and building meet local planning and zoning requirements.
4.3 Building Code Analysis
Enables owners to assess investment risk based on impacts of current building codes and local amendments.
4.4 Risk Management Scheduling
Enables owners to assess overall investment risk as it relates to project timing and requirement for project funding.
4.5 Cost Estimating
Enables owners to evaluate investment risk as it is impacted by overall project cost and provides comprehensive figure for construction related costs to be incorporated into project financial analysis.
Level 5: Implementation Plan
5.1 Long Range Physical Planning Strategy
Executive summary format enables property owners to have a concise integrated guide for long range planning of physical facilities.
5.2 Short Term Physical Planning Strategy
Executive summary format enables property owners to have a concise integrated guide for short term planning of physical facilities.
Make a plan. Have a plan. You’ll be glad you did!