Professional Documents
Culture Documents
Handing over of the built space is an important step towards Contract Closure
and forms part of the „Project Close-out‟ operations.
It should be viewed as a phased professional activity and not just one of
handing over the possession of the premises to the owner.
2) In Project Management the contract is deemed complete when all its items are met, even
if the buyer and seller are not completely satisfied with the work. However, this methodology
results in dissatisfied customers and thus this view has to be changed by adopting a
professional approach in the manner of close-out.
Inspection
While handing over the physical possession of the premises a joint inspection
document should be created which should also have a check list of the essential
features of the property.
This is important to avoid later claims by the customer especially so when the
customer further allows his own workmen to carry out the interiors work subsequently.
This exercise is also to list out items not yet provided by the developer.
1.
2. ional check of plinth/carpet area ( if requested by the buyer).
3.
4.
any.
Utilities
Manufacturer make and serial number etc. condition of seals, meter reading at the
time of handing over in respect of:
Electric Meter
Water Meter
Gas Meter
Finishes
and polish stains, discolouration, damp patches, undulation and cracks -major and minor,
scratches, breaking, chipping or wear out of tiles, insufficient or no polish of marble or wood,
this is in respect of: -
Walls 1. 2.
QMS
Ordinarily the QMS audit prior to handing over should be able to capture information
about all the defects and deficiencies in finishes, condition and operability of the
different features of the building.
Some other problem areas worth taking care of are: working of toilets and kitchen
including blockage of drains with sand, debris and other construction waste. As a
practice plumbers seal the nahney traps with bags to prevent the drains from getting
blocked but do not remove all of them later on.
Placing of Locks
-in (mortice) locks are provided then all the keys (usually three) should be handed
over and details of make, no. of keys and serial number should be recorded.
ALTERATION POLICY
Developers permit limited modifications to the built space as per customer
requirement in respect of the internal layout which does not require any structural
changes.
They also permit change in sanitary fittings, wall and floor tiles and kitchen platforms
and furniture. All this is at a cost to the buyer.
However, no alteration is permitted in respect of the building elevation and façade,
including balconies as well as in the surrounding external environment.
1.
2.
3. osts.
4.
Current Practice
lders have
now started refusing permission for alteration to the customers at the time of booking itself.
internal construction and by quoting higher costs for alteration than actual.
placement is permitted no
refunds ( or set-off) is given.
Further Reading
Security Issues
Security
spaces.
Security Objectives
2. visitors
Nature of People
1.
2.
3.
Types of security
1. Active Security
2. Passive Security
Physical Security
esources include people, the facility in which they work, and the data, equipment,
support systems, media, and supplies they utilize.
Security Layers
Deterrence
Delaying
Detection
Assessment
Response
Category of Threats
e)
Crime and disruption protection through deterrence (fences, security guards, warning
signs, etc.).
Reduction of damage through the use of delaying mechanisms (e.g., locks, security
personnel, etc.).
Crime or disruption detection (e.g., smoke detectors, motion detectors, CCTV, etc.).
- Crime Prevention
Through Environmental Design is a discipline that outlines how proper design of a physical
environment can reduce crime.
liveries
Society Formation:
The Real Estate Business Process
2) Regulating the conduct of the members according to the bye laws of the society.
4) Conducting the affairs of the society as per the relevant Cooperative Societies Act of the
State.
For civic amenities like water, drainage and sanitation,electricity including street lighting,
garbage disposal, general upkeep of the surrounding area, unauthorised parking, police
patrolling and other law & order problems, postal department, fire department, telephone
department, levy and collection of property taxes etc.
This is done in accordance with the bye laws of the society and concerns:
6) Providing solutions to typical common problems like car parking, children and teenager play
areas and activities, neighbor problems, pet management, clothes drying, domestic help etc.
Managing and maintaining the Club House and similar other services as a separate business
entity.
Contracting for various services and permitting vendors within the premises.
1) Conducting General Body and other meetings as per the societies act.
2) Conducting elections for the various posts of office bearers of the society.
3) Appointing employees for the smooth conduct of the affairs of the society.
5) Appointing auditors.
(a) Open Plot Societies (b) Flat Owners Societies (c) Tenant Societies
Open Plot Societies: members purchase or take on lease a plot of land and themselves
construct the building.
Flat Owner‟s Society : When a builder constructs flats and sells them to Flat Owners.
Housing Board Society: When a Society is formed by allottees of flats and building is
constructed by the Housing Board Authorities, i.e. Mumbai
The builder under the Flat Owners type of co-operative society has the first right to act as the
chief promoter.
The developer/flat purchasers should call for a meeting of the Promoters by issuing the
notice under Agenda of the meeting given at least 14 days notice to the Promoters.
In this meeting, a Chief Promoter is elected who can exercise such powers and carry out
such functions as are mentioned in the minutes of the Promoters of the proposed Co-
operative Society.
After electing the Chief Promoter, the proposed name of the society has to be decided by the
Promoters.
CARE – Credit Analysis and Research Limited, by IDBI Bank, Canara Bank & SBI
ICRA – (formerly Investment Information and Credit Rating Agency of India Limited) by
Moody‟s investor service.
-
i) Developer Ratings ii) Project Rating
DEVELOPER RATINGS
FIs adopt a cautious approach in financing residential and commercial real estate projects.
Ratings provide a third party (independent) opinion to FIs as well as to housing customers.
Help developers mobilise funds and also aid in marketing of the project to prospective buyers.
Organisation Risk:
S.R.P**- 6th Term Real Estate Development Page 10
i) Systems
ii) Structure
iii) Strategy
Financial Risk:
Completion/occupancy certificates
Transfer of clean titles to investors ,Non-compliance leads to vulnerability to legal action, this
reflects unfavourably on the developer
Construction Track Record – soundness of buildings already constructed becomes a primary factor
as this reflects his commitment to safety.
Also, scale and size of past projects, total area developed and time taken for formation of a
cooperative society in residential projects (indicates fully passing of title to investor)
Market Track Record - RE projects prone to very high market risks due to volatile conditions.
Hence,
Record of saleability, off-take of past projects and complaints outstanding in consumer courts and
other disputes serve as an indicator
Organisation structure
Strategy –
Land identification and acquisition strategies
Marketing strategy
Construction strategy
Strategy to reduce dependence on a single market or on real estate business alone ( to overcome
adverse business cycles)
Because construction industry is capital intensive and large quantum of funds is needed up-front
and during various stages of development
Financial Flexibility – viewed in relation to the number of projects under development and the
funding tie-ups for the same.
-up end-to-end funding for projects is essential for timely and cost efficient
execution.
– Highest ability of the developer to specify and build to agreed quality levels and
transfer clear title within stipulated time schedules.
PROJECT RATINGS
1) Clarity of Title
2) Restrictive Covenants
3) Encumbrances
4) Sale Agreement
5) Development Agreement
or incomplete, the developer is asked to get a second legal opinion.
-Search report issued by the lawyer or „nil‟ encumbrance certificate issued by the local authority.
-Rates and Taxes paid as per local development control rules. Receipts and non-lien
Infrastructure
Finish
Integration
Ability of the developer to transfer the plan into a sound structure. A function of:
Organisational learning
Organisation structure
examined.
-site and off-site infrastructure are assessed to see if the standards planned
for the project are met
Evaluates the extent and type of after sales service being planned by the developer for the project
as stipulated in the post delivery warranty.
on time.
appropriate
authorities.
institutions/investors
Existence of punitive clauses in favour of buyer – to compensate buyer for delayed deliveries
Based on degree of completion of project, likelihood of cost overruns are evaluted and the
manner in which these are passed on to the customers
PA1 – indicates highest ability of the developer (for a particular project) to specify and build
to agreed quality levels and transfer clear title within stipulated time schedules
PA5 – indicates inability of the developer to complete a particular project of transfer clear
title.
Note: The suffix of „+‟ or „-‟ may be used with the grading
symbol (from DR2 to DR4) to indicate the comparative position within the group covered by the
symbol.
Note: The suffix of „+‟ or „-‟ may be used with the grading
symbol (from RT2 to RT4) to indicate the comparative
position within the group covered by the symbol.
Note: The suffix of „+‟ or „-‟ may be used with the grading symbols (from CT2 to CT4) to indicate the
comparative position within the Grading category concerned.