An introduction to: Development monitoring
Commercial property developments are often financed by, sold to, or leased to, parties that have no direct control over how the development is managed. Therefore, there is a need for that party to oversee the development in order to protect their existing, or future interest in the property. In such a scenario a “Development Monitor” may be appointed.
Development Monitoring is the process of identifying, monitoring and advising on the risks associated with acquiring an interest in a development which is not under the client’s direct control. The role may also be termed project monitoring.
The Development Monitor acts in an independent role and is not associated with the development or the development team.
Their role is one of investigator and advisor to the client, and their core function is to protect the client’s interests and mitigate exposure to risk. The Development Monitor should be proactive rather than reactive and add value to the overall development process. The Development Monitor should work cooperatively with the project team and ideally be appointed at the initial stages of the project in order that the clients interest is protected from the outset and avoid potential issues at a later stage.
There are different types of organisations that may have an inherent interest in a development without having direct control over it, such as:
1. Investor / Owner Occupier
Knight Frank can assist, whatever your interest.
In 2010, the Royal Institution of Chartered Surveyors (RICS) launched the Development Monitoring Guidance Note. The new standard aims to provide a valuable industry benchmark for best-practice development monitoring, and is the first of its kind in Australia.
John Preece, National Director at Knight Frank, and Andrea Brown, Director, authored this best practice guidance note for RICS, and Knight Frank can therefore provide truly industry leading expertise in all matters relating to development monitoring.