Transformation Team

The transformation team is a crucial part of any real estate development project. You see, it's the technical hub, the heart of the operation. It's got to be closely managed and coordinated every step of the way.

Now, the transformation process is generally sequential, and it's broken up into four phases: the design phase, the entitlement phase, the logistics phase, and the construction phase. During the design phase, all the plans that are required to complete the project are drawn. These are typically created by an external team of licensed professionals, like architects, engineers, interior designers, and landscape pros.

Once the design team has completed their work, the project needs to be approved by local authorities to receive permits. We call this phase entitlement. It also includes utility provisioning and legal matters, like getting a zoning variance or completing a condo conversion. You have to secure the rights to convert the property from its initial state to the state it needs to be in to realize value.

Now, the logistics and construction phases often proceed in parallel, though logistics can start first. Logistics are all the operational activities related to the project that are not construction. For example, you might have to plan where materials will be stored off-site or how they will be managed. Sometimes tenants are affected by the work. So, clear communication with them is vital.

Construction management has two parts. First, there's site management. That's the work that takes place at the property, like overseeing subcontractors, coordinating deliveries, managing inspections, and dealing with neighbors day to day. That’s how most people think of construction.

But before all that, the work that affects the project’s success the most, construction planning, must happen. Construction planning starts when designers provide drawings to the construction management team. Planners review them, ensure they're buildable, and ask any necessary questions. Next, planners develop scopes of work, trade by trade, so they can seek proposals for the work from suppliers and subcontractors, evaluate all bids, and select the right ones. If planning and buyout are not done well before site construction, they can blow up a project’s schedule and budget. Once the project is underway, the construction management team needs to coordinate with the site manager regularly to make sure everything is proceeding smoothly and address any issues that arise.