Before You Break Ground: Six Questions Every Development Project Should Answer First
Most development projects that run over budget don't fail at construction. They fail months earlier, when key questions were answered too quickly or not at all. Before the first shovel goes in, these six questions deserve a clear, written answer.
1. Does the site actually allow what we want to build?
Zoning, setbacks, height limits, parking requirements and easements decide what a parcel can hold. A site that looks ideal on a map can lose a third of its usable area once these are applied. Confirm the zoning in writing with the local planning office, and budget time for a variance if the plan needs one.
2. What is under the ground?
Soil conditions, drainage, old foundations and environmental contamination are among the most common sources of surprise costs. A geotechnical report and, where the site's history calls for it, an environmental assessment cost far less than discovering a problem after excavation begins.
3. Who is the end user, and what will they pay?
A project is only as strong as its market. Study comparable properties nearby: their rents or sale prices, how long they take to lease or sell, and what tenants or buyers say is missing. Design for that demand rather than for what is easiest to build.
4. How much contingency is enough?
A contingency is not padding; it is the honest cost of uncertainty. Earlier-stage projects, older sites and renovations need more. Set the contingency before bidding, and decide in advance who can approve spending it.
5. What is the real schedule?
Permits, utility connections, inspections and material lead times rarely move as fast as construction itself. Build the schedule backward from the date the property must produce income, and track the items that sit outside the contractor's control.
6. How will the property be run once it is finished?
Operating costs, maintenance access, energy use and management needs should shape the design, not be discovered after opening. A building that is cheaper to operate holds its value longer.
None of these questions is new. What separates successful projects is the discipline to answer them on paper, early, and to revisit them as the project changes. The cheapest problem to fix is the one you find before you build.