Investment projects in construction, like all long-term investments, are subject to the risk of changes in the value of money. During the project implementation, prices for raw materials, materials, labor, energy, and finished products may change.
Effective management of investment projects in construction allows you to understand in a timely manner whether all indicators meet the stated standards, what you should pay attention to, and what actions to take. An integral part of such management at all stages of project implementation – from calculating the cost of a potential facility and resource costs to optimizing investment construction management – are digital solutions for developers.
Investment construction management includes such important areas as risk management (in order to minimize them) and profitability management (in order to maximize them).
Profitability management. Profitability is the most important characteristic of an asset. On its basis, an investor decides on the advisability of investing capital in a particular project, comparing them with each other by this indicator. The profitability of real estate investments directly depends on the effectiveness of management decisions, which are based not only on large-scale marketing analysis, investment efficiency calculation, detailed feasibility study, but also on long-term forecasts of changes in the external market. Constant monitoring of the environment allows the developer to adjust the management strategy, maintaining or changing the volume of investments in accordance with the investment attractiveness of the construction project.
Risk management. The tasks of the head of investment construction include calculating all possible risks before the start of the project, even at the planning stage. It is important to include in the budget the costs of eliminating and preventing risks. To achieve the goals of the project, it is necessary to constantly analyze, evaluate, and systematize project risks. This is how you can take control of the complexity and volatility of the external environment that affect the implementation of construction.