PROPERTY DEVELOPMENT

Property Development

Property Development

Introduction

For a community to be sustainable, it is imperative to have various housing options that are available to people of all income levels in order to maintain equality and peace. It is important for the state to develop property with a rapid growth of population in order to cater to people needs. If this issue is not addressed it could lead to social and economic problems for the country. In many of these companies target, real estate comprises a substantial portion of total assets are recorded at historical cost balance sheet. In other words, these companies become acquisition targets by holding real estate assets that are not efficiently put to its highest and best use. Acquisitions can be seen as a mechanism by which the real estate market changes less efficient to more efficient uses. The paper discusses various problems and issues associated with construction or development of a property.

Background of the Study

In this paper, we will assess the issues and processes involved in constructing a building. A huge shopping mall is being developed in Sydney, which will give access to a large population of the city. All projects or business ventures involve risks of various kinds and types. According to Flanagan and Norman, the construction industry is subject to more risks than other industries. In construction projects, risks and uncertainties are of several types. Some of these are: political, financial, economical, environmental and technical. Many of these uncertainties will involve a possible range of financial outcomes that could be better or worse than predicted. Hence, all the issues would be discussed in this report (Lewis, 1995, p.231).

Preparing for the Development

For the development of the Shopping Mall, many aspects were considered by the construction company before constructing the Mall like Cost of Construction, Location, availability and feasibility of available Land, access to roads etc. The risks of the constructing the Shopping Mall was also considered. The construction company carried out a risk management analysis to cater to the risks and problems associated with the project. The objective of proactive risk management is to reduce different risks related to a preset level to a level accepted by society. You can refer to numerous types of threats caused by environment, technology, humans, organizations and politics. On the other hand, involves all the resources available to human beings or, in particular, a proactive risk management entity (person, staff, organization). Thus, business risk management is a process conducted by the board of an entity's management and staff of the entity. It is applied in establishing enterprise-wide strategies designed to identify potential events that may affect the entity and manage risk to provide reasonable security and integrity regarding the achievement of objectives.

The quantification of damage in the construction of great complexity due to the necessary mobility that characterizes the activity. Although the basic procedures are more or less the same, change the location, topographical and geological conditions and the type of equipment to be ...