Before you can manage quality, firstly you need to clearly understand what this means to the project. It’s not necessarily all about “how it looks”.

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The first step in managing quality is to have a very good understanding of what your client perceives is Quality in their project. You will be amazed how very different this can be between different clients.

Now having said that, it doesn’t mean that traditional understanding of quality (the aesthetic of the final product) is overlooked.  However if for example you are working on a high end Green Star rated building project, which is utilising products such as recycled concrete and timbers in the structural elements, then quality becomes very much about the sourcing of this material, the environmental footprint, and the structural integrity. You can’t see these items but they are the basis of what this project is all about.

Of course finishing quality and minor defects should never be compromised…simply added to by understanding what really motivates your client.

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Don’t forget to check out our services page for all our quick tips and free guides on our services.

Services OLD

Following is a Checklist you can use when you are completing a high level Feasibility Analysis on a project. Initial feasibilities are generally based on industry averages and the Development Manager should have their own up to date research on all inputs. As the project progresses each of the input items must be firmed up by formal quotes and design analysis.

Have you got it all covered?

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Feasibility Checklist

• Land

  • Purchase price or value

  • Stamp Duty and Acquisition costs

• Due Diligence Costs

  • Specialist consultant risk reporting

• Town Planning Costs

  • Architect

  • Infrastructure review

  • Town Planner

  • Traffic & Acoustic Engineers

• Design costs

  • Architect

  • Civil & Structural Engineer

  • Electrical & Mechanical Engineer

  • Hydraulic Engineer

  • Energy Efficiency

  • Geo Tech Engineer

  • Landscape Architect

• Authority costs

  • Council planning approval fees

  • Operational Works and Plumbing Approvals

  • QBCC fees

  • Infrastructure Charges

  • State Government fees

  • Referral agency fees

  • Portable Long Service Levy

• Construction Costs

  • Build cost

  • Infrastructure upgrades including Power

  • External works costs

• Finance Parameters

  • Valuation

  • Interest rates

  • LVR parameters

  • Equity required

  • Loan Establishment Costs

• Other Costs

  • Development and Project Manager

  • Quantity Surveyor

  • Surveyor

  • Holding costs – Rates, Land Tax, Insurance

• Residential Sales

  • Sale pricing

  • Sale rates

  • Commissions

  • Incentives

  • Margin Scheme Provisions

  • Marketing budget

• Commercial Sales

  • Rental

  • Outgoings

  • Lease Term

  • Cap Rate

  • Sale and lease commissions

  • Incentives

  • Marketing Budget

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Don’t forget to check out our services page for all our quick tips and free guides on our services.

Services OLD

Early Contractor Involvement (ECI) style procurement is built around relationship and risk. Open Tender is based on cheapest price.

Which one is best for your project?

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There are many different methods of procuring and engaging with a builder or head contractor for a project, but let’s look at two ends of the scale –

1. Early Contractor Involvement (ECI)

2. Open Tender

There are key risk issues with each that dictate which method is the best for your project -

ECI

• Firstly ECI is NOT a Design and Construct contract, there is a big difference

• Reputation and relationship is critical. The builder will become part of your design team and needs to bring solutions, not problems, to the table

• Experience of the builder is a key factor. The main reason for an ECI Tender is to access the knowledge of the builder in terms of constructability that can be incorporated within your designs

• ECI should be based on an open book basis meaning the builder works with the client on the subcontractor scopes and is able to view all competitive subcontract trade quotes.

• If you as the client are not experienced in construction, or you don’t have a trusted Project Manager representing you, or your relationship with the contractor is not resolute, then ECI is likely not the right approach for you.

Open Tender

• Theoretically will achieve the best price in the market-place

• Is less reliant on relationship to achieve the best price

• Your consultants must be of the highest calibre to ensure your documentation is of highest standard to minimise variations

• Risk must be reduced through a Guaranteed Maximum Price contract arrangement

Neither option is right or wrong but depends on your knowledge of the process and your relationships, but a couple of quick reminders –

• No matter how good your relationship, always have strong contractual documentation…mates’ rates is NOT a form of contract!

• ECI works when there is strong trust in the contractor/client relationship, and the client is confident on their knowledge of the process

• Open Tender works best to get the lowest price ONLY IF you have strong consultant design documentation

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Don’t forget to check out our services page for all our quick tips and free guides on our services.

Services OLD

Under a construction contract these are two distinct roles, but they often get confused.

So what is the difference?

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Clients Representative

As the Clients Rep you are responsible for ensuring the contract is administered and construction is delivered in line with the principals’ rights and responsibilities.

Superintendent

As a Superintendent you are an independent expert who administers the contract and ensures all conditions of the contract are met by all parties.

Make sure you have the “right expert” in the “right role”.

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Don’t forget to check out our services page for all our quick tips and free guides on our services.

Services OLD

From idea to gentrification, there are 10 stages in the Property Life Cycle all with differing skill requirements to ensure the best outcomes from your asset.

 Where is your property on the asset Life Cycle?

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From Property Development to Property Management it is important to understand all the stages of Property process and understand that each stage requires specialist skills, and that each stage delivers very different outcomes.

I have listed the Property Life Cycle in 10 stages as follows –

1. Sourcing the Opportunity

   Understanding what drives your client, what outcomes they want to achieve (both tangible and intangible) and then matching that to the opportunities available.

2. Due Diligence Analysis

   When a project is sourced, analyse the opportunity detail to unearth and assess all risks and rewards

3. Planning Approval

   Guiding the project through the Master Planning and Town Planning Approval stages.

4. Pre-commitment

   Seeking out tenant commitment for commercial projects or sales in residential projects

5. Funding Structures

   Sourcing and securing the best funding structures that meet the clients’ criteria and the best financial outcomes for the project (One size does not fit all)

6. Design & Building Approval

   Managing a team of specialist consultants to design the most efficient project that meets or exceeds the clients’ brief

7. Construction Delivery

   Sourcing the best contractor for the project and working with that contractor to achieve the best project outcomes in terms of Time, Cost and Scope

8. Defects and Operational Handover

   On completion of construction ensure a defect free handover with minimal operational issues

9. Property Management

   The ongoing day to day management of the asset and its’ occupants ensuring longevity of financial returns and strong capital growth

10. Life Cycle and Portfolio Management

    Understand the asset within the context of a larger portfolio, or in context of the market conditions as they change and evolve. When to sell? When to refurbish? When to expand?

At Rosel Sherwood we are experts in property and with over 30 years’ experience we provide leadership in all the different stages of the Property Life Cycle.

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Don’t forget to check out our services page for all our quick tips and free guides on our services.

Services OLD

The terms Development Manager and Project Manager are often used interchangeably, but there is a distinct difference both in the scope of the role and in the personal traits required to deliver it successfully.

Do you need a Development Manager or a Project Manager?

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Let’s take a Property Developer project as an example. This type of project can be broken down broadly into 10 stages as follows

1.  Sourcing the Opportunity

2. Due Diligence Analysis

3. Planning Approval

4. Funding Structures

5. Pre-commitment

6. Design & Building Approval

7. Construction Delivery

8. Defects and Operational Handover

9. Property Management

10. Life Cycle and Portfolio Management

 A Development Manager must have a strong understanding of Macro Property Issues and of his clients’ desired outcomes.

 A Project Manager must have a strong understanding of Construction and Design issues, and be adept at managing multiple consultants and contractors to achieve the outcomes delivered by the Development Manager.

 The Roles of the Development Manager are; the Roles of the Project Manager are highlight in Blue.

1.  Sourcing the Opportunity

2. Due Diligence Analysis

3. Planning Approval

4. Funding Structures

5. Pre-commitment

6. Property Management

7. Life Cycle and Portfolio Management

8. Life Cycle and Portfolio Management

 The Roles of the Roles of the Project Manager are;

1. Design & Building Approval

2. Construction Delivery

3. Defects and Operational Handover

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Don’t forget to check out our services page for all our quick tips and free guides on our services.

Services OLD

Energy and water availability, usage, and sustainability have become critical risk criteria of modern property asset values. The cost of energy as a percentage of overall property outgoings and tenant expenditure budgets, has grown exponentially in the last decade and will continue to grow.

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In line with Energy risks is the rising impact of Environmental Quality on tenants and customers that interact with your property asset. From the quality of the indoor working environment, to transport forms, to materials used in construction and fit-out, the fabric of the work environment is critical to the longer-term value and cash flow of the property asset.

The energy sector is changing rapidly and it is critical for property owners to understand the implications of energy costs and energy opportunities, not only in respect to their own cash flow, but how those costs are impacting their tenants. Without being ‘Energy Proactive’, property owners will eventually find themselves with assets that underperform financially and are positioned poorly against competing properties that have been proactive, which all leads to lost value and balance sheet problems.

Rosel Sherwood has over 30 years’ experience in the Assessment, Development, and Management of property assets. Energy and Environment has become such an important issue that it now stands alone in our Group as a specialist division and we have engaged with leading edge experts in the field who have pioneered some of the most effective initiatives in Australia.

Our leading-edge consultants have developed in-house modelling software which allows them to evaluate the energy flows of each separate system in the whole of property asset, and allow fine tuning, adaption, and implementation to achieve energy and demand savings to meet asset and client specific requirements.

We have created a quick tool for you to use, click the link below for your free download.

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Don’t forget to check out our services page for all our quick tips and free guides on our services.

Services OLD

Finance requirements for property development and investment opportunities are far more than getting a loan. Finance Structuring has become a field of expertise that, if handled correctly, can have enormously positive outcomes in terms of returns to owners and shareholders.

Financial Structuring is all about understanding –

1.     The Asset Parameters

2.     Investors’ expectations

3.     Risk Profiling

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With that understanding, the correct combination of funding sources can be structured to include –

• Principal debt

• Mezzanine debt

• Preferential equity

• Loan equity

• Investor equity

• Shareholder structure and share types

We have created a quick tool for you to use, click the link below for your free download.

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Don’t forget to check out our services page for all our quick tips and free guides on our services.

Services OLD

The Feasibility Analysis is the cornerstone of any property development or investment. At Rosel Sherwood we have developed our bespoke software with understanding that the strength of any feasibility analysis lies in two key components –

1.   The  comprehensiveness and accuracy of the inputs and;

2.   Its use as a ‘Living Document’

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In the first instance the inputs must be comprehensive. Feasibilities that offer a simple percentage of construction cost to cover large components such as ‘consultants’ or ‘finance’ are high risk and are open to financial manipulation. These may be sufficient for high level assessment to see if a project is worth looking into further, but after that they provide little value and increased risk. Our detailed approach allows for individual cost centres to be analysed in ‘Fee Compartments’ that align with actual consultants scopes of work and are able to be confirmed through competitive market analysis.

The ‘Living Document’ approach is perhaps the most important. Once a detailed feasibility and cash flow has been completed in Due Diligence then often it is forgotten. Our analysis of ‘Fee Compartments’ allows a co-ordinated full project life cycle cost control centre that keeps track of variations, changes in scope, and aligns with project programming changes, to provide real time snapshots of the projects performance at any time.

We have created a quick tool for you to use, click the link below for your free download.

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Don’t forget to check out our services page for all our quick tips and free guides on our services.

Services OLD

As a Development & Project Manager, the big picture is your compass.

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One of my golden rules for a successful Development or Project Manager faced with a project problem, is to focus on the big picture. Have a clear and unambiguous vision of what the Big Picture is and you’re halfway home. Then when in doubt, forget the detail and the issues at hand and look again at the big picture. This will always help you make the right decision.

Remember, the Big Picture could be intangible outcomes. A client may have a sustainability focus as an example. Don’t always assume it’s about cost and nothing else. This is why you must get to know your client, understand their vision and have a clear Big Picture to guide you.

Some of the decisions you make may go against the grain or not seem like the right decision to other people lower down the project chain, but that is because they don’t understand the clients’ vision, the Big Picture.

Due Diligence is a complex bespoke process that needs to be built for each project or property investment decision individually, because each property has its’ own unique risk elements.

 So what is it and how do we add value?

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One Size Does Not Fit All - Types of Due Diligence

1.    New Property Development

Primarily involves the assessment of a ‘green-field’ site for development. A vacant parcel of land or land with improvements that are of little future value and will be mainly demolished. There are no existing tenancies and the site is either newly developed land, or existing improvements having reached the stage of their life cycle or gentrification, where demolition and redevelopment is the highest and best use.

2.    Existing Asset Investment

Where an existing improved asset is being assessed for investment purposes. This includes existing residential, retail, offices and shopping centres. The property has existing improvements with existing income streams that require assessment against required rates of investor return.

An existing income producing asset may also have available land for further development, or an opportunity to reposition the existing asset to improve the return and overall asset value.

3.    Tenant Site Selection

Commercial and retail businesses often have specific location criteria that dictates where they establish new outlets. This is referred to as a ‘Tenant Driven’ opportunity and requires an alternate and different set of due diligence and selection criteria. Satisfying location, sight lines, access, demographics, financial capacity, competitors and generators and some of the specific criteria that are required to be addressed in the Due Diligence for Tenant Site Selection.

4.    Other

Due Diligence is a broad term that covers any investment decision. The focus of this Tool is on Property Development and Investment, but understand that DD also covers terms such as Cost Benefit Analysis and can be applied to refurbishment decisions, redevelopment decisions, capital expenditure and maintenance budgets.

The key is to have a clear methodology and a comprehensive understanding of what knowledge is required to make the best financial decision possible. We have created a quick tool for you to use to in your prep time, click the link below for your free download.

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Don’t forget to check out our services page for all our quick tips and free guides on our services.

Services OLD

A successful Project Manager is a Jack of all trades and a Master of none… well sort of.

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A successful project manager has to have a strong knowledge of his industry, but the real key is knowing enough about each area of the project, to know what you don’t know, then combine that with the maturity to know when to seek assistance and where to seek it.

Project Management is all about information. You can never know everything about everything, and if you think you do then don’t be a project manager because you will never listen to anyone else.

As a Project Manager your role is to use the best people in the individual fields, motivate them, and guide the whole ship to the overarching strategic outcome.

Sometimes the role is like being a kindergarten teacher…but that’s where your skills will shine.

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Property Development and Investment Opportunities are not easy to find…and if they were, then you’re looking in the wrong places.

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At Rosel Sherwood we do not try to fit round pegs into square holes. Our approach is top down. We take our clients’ requirements and source and deliver bespoke projects. We mould the opportunities to meet our clients’ requirements, we do not mould our clients to meet the opportunity.

Following are some examples of the types of categories in which we source opportunities -

Greenfield Sites

• Location based

• Tenant driven

Brownfield Sites

• Redevelopment

• Repositioning

• Further Development

Investment Assets

• Repositioning

• Financial Reset

• Gentrification

• Energy, Water, Environment Opportunity

We source and deliver across all asset classes including Retail, Commercial, Residential, Industrial and Land Subdivision.

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There is a growing concern that Regional Employment Growth is becoming a contradiction in terms…. Why?

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I apologise in advance for my apparent negative tone. Since the GFC and the downturn in mining, the appetite for investment has contracted to the Metropolitan areas of Brisbane, Sydney and Melbourne. The consensus has always been though, that once mining gets back on its feet, followed by strategic infrastructure funding in regional areas, that the regions will again become the boom frontiers.

I am concerned about this for several reasons.

1.     Mining employment should bring more workers and businesses to fly in – fly out centres such as Townsville, however more and more people are opting to fly in – fly out from Brisbane and even Sydney. They do this for family reasons, lifestyle and amenity. (I am sprouting the same argument the small mining towns have had for years)

2.     There is a strong move towards automation in the mining industry. We know about driverless trucks already. Mining companies will continue to automate where possible as this reduces costs, staffing costs and also workplace dispute issues. Where will this be in 5 years or 10 years?

3.     The infrastructure spending in the regions that seems to be attracting the political dollar are things such as roads, stadiums and flood repairs. All great and worthy spends that create jobs (albeit short term) and activity. However, where is the spending on Water and Power, the two key essentials that we need to attract longer term and larger scale projects to the region? It is concerning that the far left of politics seems to have hijacked the Water and Power debate and there can be no debate on sustainable development.

4.     Since the GFC and the Banking Royal Commission, funding risk parameters have changed dramatically seeing a rise in mezzanine style funding and a contraction in the property development industry to those with large equity partnerships. Property Development is no longer a game you can start small and grow.

5.     …and finally, my favourite topic “Political Will”. The election result was a boost for confidence but that must be followed with nation building project spending that opens up our country to sustainable development. In the north we should be the frontier of research and development, the frontier for primary industry, and the frontier for renewable energy generation...but I have yet to see the “Political Will” to match the rhetoric.

Where to from here for Regional Australia?

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au

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With over 30 years of experience in the Development and Construction industries, John Rosel and Chris Sherwood have a unique high level of property knowledge and skill. Part of that skill is Project Delivery which is broken down into 4 key skill sets –

 1.    Development Management

2.    Project Management

3.    Clients Representative Role

4.    Construction Superintendent

In this blog lets look at what the Superintendent role entails…

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Construction Superintendent

The Construction Superintendent role is a formal role under contracts such as AS2124 and AS4300. The Rosel Sherwood team are registered project managers with the Australian Institute of Project Management and licenced with the Australian Building and Construction Commission to perform the role of construction superintendent.

This important/integral role is to act as an independent overseer of the construction contract and the delivery of the agreed services in line with the terms and conditions of the contract. The role also entails managing Extensions of Time, Variations, Request for Information, and assessing and certifying claims.

For more information go to the Services page on our website as follows –

https://www.roselsherwood.com.au/services

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au

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Focus on Strengths or Weaknesses?

In our business, should we work on correcting our weaknesses or focus on improving our strengths? Focusing on your weaknesses is a cop out and is acknowledging the hold that the fear of failure has in your life and on your business.

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We should absolutely focus on our strengths. We are here for only a short time and we should put as much back into the world through our strengths as we possibly can.

But most people focus on their weaknesses and do you know why? Because of the fear of failure of ridicule if they improve their strengths above the average. They don’t want to stick their head above the crowd and have everyone look at them. It’s far easier to quietly focus on improving a weakness where there are plenty of excuses for why you can’t achieve, than stepping out of the average and becoming genuinely good at something.

This doesn’t mean you need to be the greatest at anything, it just means give the best you can with what you have, where you are. Stop looking for excuses.

 Check out my Coaching & Mentoring website or email me for a chat anytime.

https://www.the4pillarsoflife.com.au/q-coaching

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au

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With over 30 years of experience in the Development and Construction industries, John Rosel and Chris Sherwood have formed a unique high standard of property knowledge and skill. Part of that skill is Project Delivery which is broken down into 4 key skill sets –

 1.    Development Management

2.    Project Management

3.    Clients Representative Role

4.    Construction Superintendent

In this blog we look at what the Client Representative role entails…

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Client Representative

Rosel Sherwood specialises in providing professional Client side representation during any project or construction delivery. Without detracting from the responsibilities and liabilities of the head contractor, Rosel Sherwood utilises its’ years of experience to ensure projects are delivered in line within the time, financial, and scope parameters of the project.

Our uniqueness lies in our ability to take the time to clearly understand what our client is seeking to achieve, and to ensure that delivery is in line with the aspirations, both tangible and intangible, of our client.

For more information go to the Services page on our website as follows –

https://www.roselsherwood.com.au/services

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au

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What do people want to hear?

Telling people what they want to hear is something that happens in the work place and media every single day. But there are different connotations of this problem, some unconscious and some conscious.

Can you spot the difference?

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When it comes to telling people what they want to hear we’ve all experienced it in at least three different forms –

1.     The “Yes” man who tells the boss what he wants to hear out of fear, lack of confidence or a desire to ingratiate themselves

2.     The politician who tells a group of people what they want to hear to gain their support and votes

3.     The media commentator or personality who tells their audience what they want to hear, which reinforces their opinions and prejudices, and makes them feel “right” and others wrong.

But there is another form of “telling people what they want to hear” that we all fall into, and we do it subconsciously. When you find yourself with a person or group who has differing views to you there are two ways we often react –

·        The more time you spend with these people you find yourself falling in line with views and opinions that don’t support your values

OR

 ·        You laugh along and agree because it is easy, and it avoids conflict. You start to build up internal tension towards this group and that then emboldens your own opposite view, and you become right, and they become wrong.

There are two paths you can take when you become aware of this habit you are falling into –

1.     The “low hanging fruit” or the unconscious way of dealing with this situation is to stand up for yourself. Stand up for your views. Voice your opinions and don’t be afraid to rock the boat. Be very careful if you do this that you are simply not defending your view of the world over someone else’s, that you simply want to be right.

2.     The difficult way is to sit and listen without expressing views. To be able to take the time to understand why this group or this person has the view they do. If you are able to do this what you will start to see how that person’s thinking comes from their opinions which are formed by all the experiences they have had in their life, to a point they have unconsciously formed an opinion about a certain issue and they feel the need to voice or defend that opinion.

It takes more effort and self-belief to be able to shut up and listen, than it does to be right.

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au

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With over 30 years of experience in the Development and Construction industries, John Rosel and Chris Sherwood have a unique high level of property knowledge and skill. Part of that skill is Project Delivery which is broken down into 4 key skill sets –

1.    Development Management

2.    Project Management

3.    Clients Representative Role

4.    Construction Superintendent

In this blog lets look at what the Project Management role entails…

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Project Management

The Rosel Sherwood team are registered Project Managers with the Australian Institute of Project Management and licenced under the Queensland Building & Construction Commission for Project Management Services.

A central element of Rosel Sherwood’s Project Management delivery is the provision of an integrated and proactive methodology. With 30 + years’ experience in the business, Rosel Sherwood provide a high level of people and task management based processes which ensure projects are delivered on TIME, on SCOPE, on BUDGET, and on PURPOSE.

Project Management requires a clear understanding of the Vision and Expectation of the project principal, and a highly skilled ability to manage a team of experts to deliver on the client’s vision and expectations.

For more information head to the Services page on our website –

https://www.roselsherwood.com.au/services

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au

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Our Circle of Influence

Who we choose to surround ourselves with on a day to day basis influences who we are and how we perform. But we can’t always choose who sneaks into our circle of influence….

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You’ll often hear that our attitude is influenced by who we choose to surround ourselves with, and that we should just remove toxic people from our lives. Easy….job done.

But what about your boss, who happens to be a complete tool? The only way to remove him from your life is to quit the job……and then probably take up working for another tool. So what’s the point?

Your Circle of Influence is about your attitude, not the physical presence of people or situations. Yes you should remove people and situations from your life that you are able to, but there are so many situations or people you have to deal with daily, so all you can change is your attitude to those people or situations. Now you can’t just decide to not worry about what this person says any more……it just doesn’t work when you focus on the other person or situation. You can’t control them, you can only control yourself. It is not easy - if it was it would be all beer and skittles and everyone would be happy. You have to work at accepting that this person or situation is what it is, stop worrying about changing them because you can’t. You have to work on two things-

 1.       Your own automatic thoughts and reactions. Be aware of how you feel and think, and practice acceptance of what is. It’s amazing the impact of saying F*ck It, and relinquishing control of that person or situation, can have on your attitude.

 2.       Have a plan you can work towards to eventually free yourself from that person or situation over the longer term.

Check out my Coaching & Mentoring website or email me for a chat anytime.

 https://www.the4pillarsoflife.com.au/q-coaching

John Rosel

john@roselsherwood.com.au

www.roselsherwood.com.au

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