Project delivery is about managing risk, whereas development is about making profit from investment. How can you transition from managing delivery to managing profits? We give you 8 tips on how to successfully transition from Project Delivery to Development in 2019.
Tip #1 Develop Your Knowledge
To move into development you need to understand the market you are interested in. Residential – what are properties selling for on a square metre basis? Industrial – are yields being compressed? Commercial – what are incentives running at? You may be yet to put this into practice, but do your research and show you have a strong interest and theoretical understanding.
Tip #2 Understand Your Value
You know how to manage a project but can you manage a development? Most of the work in development is done before the delivery of the project starts. You might be in demand to a builder, project manager or consultant, but often this isn’t the expertise a development group requires. To work for a developer you may need to consider a pay cut to first learn and put into practice these skills. Once your skills develop beyond delivery, your value to a development employer will increase.
Tip #3 Become A Feasibility Expert
Running projects is about managing costs, but in development it’s about creating and capturing revenue, and then ensuring the costs are controlled to deliver a profit. Development costs often include associations with finance and funding. There is revenue to predict and model, cash flows to work out and requirements to service debt and repayments. Some groups look for IRR, some look for Return on Equity, others Margin on Turnover. Whatever the measure, if you can grasp a good understanding around…