In celebration of ‘New Homes Week’, we’re highlighting the benefits of utilising a Development Monitoring service when commissioning a new build development. This article will take you through the different stages and milestones of what a Development Monitoring team can do to identify potential risks and allocate management of such risks for the benefit of the development.

The role of a development monitor can vary depending on the context, but in general, their primary responsibilities involve tracking and evaluating progress in development projects. The benefit to a Funder, or interested party, in engaging a competent Monitor is that they are able to identify risk issues early on and report these to the Funder. This can facilitate early resolution of the issue(s) and ultimately reduce the impact of construction-related issues on the viability of a scheme.

The functions and benefits of engaging a Development Monitor can be categorised under the following headings;-

Monitoring Progress

Development Monitors track the progress of projects against predetermined goals and objectives. They collect data on various indicators to assess whether the project is on track to achieve its intended results. Monitoring progress against the agreed schedules will highlight any potential delays. These can then be discussed with the delivery team and strategise, where possible, a means to mitigate any delays, or where this is not possible, highlight to the Funder at the earliest opportunity in order that the impact can be assessed from a lending perspective.

Reporting

Development Monitors will undertake a due diligence report once appointed and prior to the Funder agreeing final terms with the Developer. This Initial Appraisal will review the scheme from a construction perspective, with particular emphasis on costs, programme, statutory obligations, appointments and suitability of the proposed delivery team. This report will provide valuable insight to the Funder as to whether the scheme is expected to be achievable within the parameters identified by the developer. It will also identify any shortfalls that would need to be discussed prior to the Terms being agreed upon.

After the scheme has been reviewed, alongside the Funder’s Legal Advisors and Valuation surveyor, the Terms will be agreed upon with the Developer. Subsequent to this, and once the scheme is underway on-site, Development Monitors prepare regular reports documenting the progress of the projects. These reports often rely on information provided by the Developer but also require an analytical process to identify any issues or undeclared matters that may affect the ability to deliver the scheme within the agreed structures.

Quality Assurance

They ensure that data collection methods are rigorous and reliable and that the data collected accurately reflects the progress and impact of the project. This may involve conducting quality checks and validations of data sources. This analytical approach will allow the reporting to be as accurate and independent as possible so that the Funder is able to make educated decisions throughout the life of the development.

Risk Management

Development Monitors identify potential risks and challenges that may affect the successful implementation of a project and provide recommendations for mitigating these risks and maximising the likelihood of achieving the intended outcomes. With enhanced risk management and identification, the likelihood of a successful scheme is increased.

Overall, a Development Monitoring Service plays a crucial role in maintaining accountability, transparency, and effectiveness in development projects by providing evidence-based insights into progress and performance and applying their in-depth knowledge of construction projects to relay to Funders how their development is progressing.

Written by Mark Merrit, Head of Development Monitoring. To contact him about any Development Monitoring queries, please view his profile here.

To visit our Development Monitoring case studies page, please click here.