SITE ACQUISITION
Project Management Services by Shorcom
Learn more about Project Management and Joint Venture to see which service is best suited for you.
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Management throughout any phase of the project.
Whether you are starting from scratch or need a project management team to take over your construction phase - Shorcom offers our project management services.
Agreements for project management or joint venture.
Our relational contractural agreements come in two forms; project management agreement and joint venture agreement. Learn more about each option below.
Project Management Agreement
The core principle of Shorcom's Project Management service is charging a fixed fee for running the entire project for you at cost and open book. The advantages of Shorcom managing your project are bulk buying power and scale.
As we have the optimum number of homes for every project, and multiple ventures underway at any time, we are able to leverage these economies of scale to deliver you a cheaper build price. The project management fee is a contractual arrangement for this service. An incentive bonus is also incorporated based on project performance.
This can be summarised by the following steps:
The property title remains with the land owner in an entity form to suit their needs.
The land owner provides the preliminaries funding for Resource & Building Consent; alternatively, Shorcom's funder can advance preliminaries finance from land equity secured by first mortgage, and a personal guarantee from the land owner.
Shorcom is engaged as the project management company. The project management fee is a contractual arrangement to be paid monthly. We always operate through open-book accounting, at cost, validated by source documents.
The land owner provides the construction funding; or, alternatively again, our funder can provide finance once Resource & Building Consent is granted.
Approximately 80% - 90% of the total site works are from fixed-price contractors; the remaining 10% - 20% is from Longevity Construction employees, who build the superstructure from ICF, as well as any other site works.
On completion and settlement, any funder is paid first, and then the land owner retains 100% of the project profit.
Joint Venture Agreement.
For any development, funding is needed for the preliminaries and the construction phase. We can provide that funding through a second-tier lender, which of course, requires personal guarantees. We are willing to give PG’s for this if we have a joint venture agreement.
This can be summarised by the following steps:
The property title is transferred to a Joint Venture company at an agreed value, while the landowners' interest is secured by a term loan agreement, and a second mortgage.
Our funder advances the preliminary finance from the land equity secured by the first mortgage, and a personal guarantee from the Joint Venture company's director.
Shorcom is then engaged as a project management company. The project management fee is a contractual arrangement to be paid monthly. All accounting is completed open-book, at cost, and validated by source documents.
Once Resource & Building Consent are granted, and 50% of the total pre-sales met, we arrange for a QS to validate the costings.
Construction finance is then approved and secured by the first mortgage, and person guarantee from the Joint Venture company director. We also arrange monthly drawdowns of required funding.
80% - 90% of the total site works are from fixed-price contractors; the remaining 10% - 20% is from Longevity Construction employees, who build the superstructure from ICF, as well as any other site works (with no margin).
On completion and settlement, the funder is paid first, then the land owner is paid the agreed land value; finally the remaining profit is split according to previously agreed amounts.
Construction Management.
If you have a project that has already gained council consent and is ready to begin construction - our team is able to manage the project throughout this phase.
While we provide management services from the very beginning of a project, if you already have consented plans and only require construction management services then our team can help.
Our contractors are sourced from the local community and are managed under a comprehensive scheduling system by the team of project managers. This ensures that the site operates smoothly, and that there are no mis-communications about who should be on site.
It also makes sure the site remains tidy and prepared for the next stage of contractors scheduled in to complete work. This eliminates conflict between workers and possible hazards that could arise from poor management.
The team follow strict health and safety procedures, to eliminate injury and provide reliable construction. In addition to this, each site has a security camera installed that will monitor the site 24/7.
