Development Project Management Fee

Discussion in 'Development' started by iDex, 15th Mar, 2017.

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  1. iDex

    iDex Well-Known Member

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    Perth
    Hi everyone,

    Does anyone know what is industry norm for the use project management services (from finding a property to sales)? Is there a difference how the fee is calculated between land/estate development and apartment development? It would also be much appreciated to hear from those who are working in this area of property development.

    Thanks in advance,
    Dex
     
    iDex, 15th Mar, 2017
    #1
  2. Cactus

    Cactus Well-Known Member

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    For land and townhouse development the following is typical

    Site ID 3% of price
    Development 5% of GRV
    Sales and Marketing Management 1% of GRV
    All plus GST
     
    Cactus, 15th Mar, 2017
    #2
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Perth
    It varies a lot!!
    Some people use project managers and some people use buyers agents.
    I charge a percentage (between 2-3% of contract prices) but I know some are fixed fee or an hourly rate for more project management type services.
     
    Westminster, 15th Mar, 2017
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  4. iDex

    iDex Well-Known Member

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    Perth
    What does GRV stand for if you don't mind me asking?
     
    iDex, 15th Mar, 2017
    #4
  5. Cactus

    Cactus Well-Known Member

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    Gross realiseable value

    The sales revenue pre all deductions...
     
    Cactus, 15th Mar, 2017
    #5
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