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Challenges builders face in residential development

On Behalf of | May 5, 2016 | Residential Real Estate |

Any of our readers who take a look around the South Florida metropolitan area know that residential development has picked up quite a bit in recent years. Condo towers are popping up left and right, even as more land development projects get the green light. However, behind each of these projects there is a builder who has to comply with the terms of an agreement that was likely worked out with the investors who are pursuing the development property. Those builders can sometimes feel the heat of getting the projects done against stiff deadlines.

In any kind of land development, but with residential property in particular, a building developer will likely face certain challenges as the project progresses. The goal? To maximize the profit from the project, which typically means that the developer works to find a way to lower the costs for materials and labor, as they are usually locked in to a particular bid for a particular project. To this end, some developers will source out certain parts of the project by hiring subcontractors or specialists. Others may opt to use less-expensive equipment and materials for the short-term profit, but at the expense of long-term stability and durability.

As many of our readers can probably guess, the decisions that a builder makes throughout the course of a residential development project may ultimately lead to legal issues. What if one “shortcut” leads to an injury or defect years later? Will the builder still be responsible at that point?

Developers in South Florida may not be thinking about the legal consequences of their actions on a daily basis, and that is why it can be a good idea to get more information about some of the challenges they are likely to face when getting involved in residential development.

Source: FindLaw, “Construction Developer’s Responsibilities,” Accessed April 30, 2016