Property development Step plan

Subdivision preparation: from feasibility study to subcontractor contracts

The preparation of a subdivision determines how smoothly the rest of the project runs. Demolition, construction planning, cost estimate, utility extensions and subcontractor contracts each need their own documents. In Lean, each document is attached to the step where it is needed, and for each housing development you see what is already in and what is still missing.

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Why preparing a subdivision takes so much information

Before an excavator arrives on site, a lot has to be decided and recorded. Does something need to be demolished first? Which utility networks need to be extended, and which documents does each network operator ask for? What will the project cost in materials, labour, infrastructure and financing? And which subcontractor does the earthworks, under which contract?

Each answer comes from a different party: the contractor, the engineering firm, the network operator, the bank, the municipality. Those documents are needed again later, when the subdivision is carried out and the blocks are built. If one is missing, you often only notice when the next step has to start and the crew is already scheduled.

With IRP in Lean ERP you record the preparation as a sequence of steps, with per step the information that belongs to it. Below is an example of such a step plan. You can model your own processes within IRP.

The feasibility study: the basis for the subdivision

Every subdivision starts with a feasibility study. In it, you map the risks of the site, check whether the project is feasible, and get a first view of the costs and the budget. What you decide here determines the permits, the planning and the price of the plots later on.

The feasibility study mainly produces documents: analyses, first drawings, estimates, minutes of meetings. If they are kept in one place with the subdivision, nobody has to search for them again later. In this example the feasibility study has no fixed groups. In your own process you give it the steps you need, for example feasibility, soil and budget.

Step plan: preparing a subdivision

An example of the groups and the information that belongs to them. Each piece of information is attached to the subdivision, so it can be found again during the works and the construction.

DemolitionSometimes something has to go first: old buildings, outdated structures or contamination that affect safety or the environment. That requires permits, drawings and contracts. This group holds the list of contractors and the connections plan.
Construction planning of the subdivisionA detailed construction planning makes sure the phases of the project run in the right order. This group holds the technical specifications of the subdivision, the provisional schedule, the infrastructure needed on site, the subcontractor contracts and the consultation on the zoning plans.
Cost estimateA cost estimate shows in advance what the project will cost, so you can adjust in time. This group holds the material cost, labour costs, infrastructure costs and financing costs.
Utility extensionsWater, gas, electricity and telephone lines must be in place in time, or construction has to wait. Each network operator asks for its own documents. This group holds the plan with the area per plot, the date of the environmental permit and the documents for extending the gas, water, electricity and telephone networks.
SubcontractorsA contract records what a subcontractor must do, by when and under which conditions. This group holds the subcontractor contracts and the contract with the subcontractor selected for the earthworks.

The preparation in the file's planning

The steps of the preparation are in the planning of the subdivision, with the steps they depend on. The earthworks only start once the contract with the subcontractor is signed. The utility extension depends on the environmental permit.

Because the information is attached to the step, you also know when it is needed: before the step starts. If the documents for the water network extension are missing while the works are scheduled in three weeks, you see it now, not on the day itself.

The project budget can be built in Lean in sections with subtotals, and adds up across the underlying projects. Read more under Site management and Job costing.

**Real screen from the demo environment**, with fictitious data. The planning of a subdivision, with the steps and their dependencies. Click to enlarge.

What each party provides, and what is still missing

For each process of the subdivision you see how many documents have come in and which are still missing. A document that has not come in is shown as missing. Unknown is not in order.

Subcontractors can use a portal with their own user to see their work orders, as a list or a calendar, with the documents and comments. They only see what concerns them. Who may view or add to which document is set up with you at the start.

Read more about contracts and orders with subcontractors under Purchasing.

**Real screen from the demo environment**, with fictitious data. For each process of the subdivision, how many documents have come in. Click to enlarge.

Frequently asked questions about preparing a subdivision

What does preparing a subdivision involve?

In this example: the feasibility study, any demolition, the construction planning, the cost estimate, the utility extensions and the subcontractor contracts. In Lean you record these as steps of a process, with per step the information that belongs to it.

Can I use my own steps and documents?

Yes. The step plan on this page is an example. You model your own processes in IRP. This is set up with you at the start.

How do you see which documents are still missing?

For each process of the subdivision you see how many documents have come in and which have not. Because the steps are in the planning, you also see when a missing document is needed.

The complete step plan for property development

Preparation is the first phase. It is followed by the administration and the works of the subdivision, and the construction of the blocks.

Property development step plan ›Subdivision administration ›Software for property development ›

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