Implementation of project planning and monitoring processes at the outset is necessary for successful project execution  Integral to any real estate development project, risks threaten the costing and timeline of projects and consequently impact project execution. Emphasising on this key aspect, international property advisory firm Jones Lang LaSalle (JLL) has released its recent report titled ‘Project Risk Management’.The lengthy path from concept to delivery that a real estate project needs to traverse is filled with risks, intimidating the project success. These risks vary in nature and continuously threaten to throw off the balance among the four core principles of cost, time, quality and safety, states the report.
The report further adds that the impact of these risks upon project cost is considerably higher in the initial phase and diminishes over the development cycle. Besides, the ability to mitigate these risks also reduces over the project lifecycle, therefore necessitating implementation of project planning and monitoring processes at the outset.
Report brief
Speaking on the report’s content, Abhishek Kiran Gupta, head of research and REIS[i] at JLL, says, “The report discusses the multitude of risks associated with real estate development projects and outlines the tactics that can be employed to mitigate them to ensure successful project execution.”
The report begins with categorising real estate development projects into five discrete phases, comprising initiate, plan, design, construct and close. This is followed by identification of risks in each of these phases and simultaneous suggestion on the corresponding mitigation strategies.
Taken from the report, following is an example dealing with a risk and its mitigation in the plan phase:
Furthermore, the report throws light on the changing trend of hiring third-party consultants to exclusively monitor and advice on these risks during the aforementioned phases of the project.
Speaking to a TJCD correspondent, Pikam Jain, vice president (project planning) of Lodha Developers, opines, “Depending on the nature and complexity of a project, a property firm can take the advice of an international property consultant.”
The trend is increasingly being employed not only by successful domestic developers but also by realty investors who look at international property consultancies for their specialised skill sets and experience in assessing project risks, providing an independent perspective and pre-empting the issues before they convert into cost over-runs.
Jeeta Bandopadhyay
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