3. Development Process

Question 1

What is the asset creation process?

Answer 1

A funnel of progressive refinement of risk with increasing detail whilst maintaining maximised value

Question 2

Which decisions made have the biggest impact?

Answer 2

Earliest decisions (funnel)

Question 3

How is progressive commitment achieved?

Answer 3

By setting up milestones along the path; the development process

Question 4

What are the 8 stages in the process?

Answer 4

1. Initiation
2. Concept
3. Evaluation
4. Definition
5. Approvals
6. Construction
7. Commissioning
8. Asset management

Question 5

What is the simplified process for simple, under $5million buildings?

Answer 5

1. Budget (2 and 3)
2. Commit (4 and 5)
3. Construct (6 and 7)

Question 6

What is the first stage and what happens?

Answer 6

Initiation
Inception of idea and opportunity report

Question 7

What is the second stage and what happens?

Answer 7

Concept
Refinement of idea and indicative feasibility

Question 8

What is the third stage and what happens?

Answer 8

Evaluation
Detailed feasibility and preliminary design

Question 9

What is the fourth stage and what happens?

Answer 9

Definition
Detailed/developed design

Question 10

What is the fifth stage and what happens?

Answer 10

Approvals
Contracting and working drawings

Question 11

What is the sixth stage and what happens?

Answer 11

Delivery
Construction

Question 12

What is the seventh stage and what happens?

Answer 12

Commissioning
Completion and opening

Question 13

What is the eight stage and what happens?

Answer 13

Asset management
Ongoing - best performance and maximising investment

Question 14

What main activities happen in the initiation stage?

Answer 14

Monitor markets and spot opportunities

Question 15

What 8 main activities happen at the concept stage?

Answer 15

1. Understand site
2. Identify and discuss with players
3. Indicative design and alternative options
4. Masterplan for larger sites
5. Authority compliance scan
6. Cost estimate on area rates
7. Market and other needs established
8. Indicative feasibility

Question 16

What 9 main activities happen at the evaluation stage?

Answer 16

1. Formal market study
2. Preliminary design
3. Understand RC requirements
4. Start consultation
5. Negotiate terms with users
6. Risk management considered
7. Detailed feasibility study
8. Elemental cost estimate
9. Make decision to proceed

Question 17

What 9 main activities happen at the definition stage?

Answer 17

1. Lodge details for resource consent
2. Identify contractor (ECI)
3. Developed design
4. Arrange financing
5. Refined cost for risk management
6. Set development parameters
7. Detailed construction and project plan
8. Building manager part of the team
9. Stakeholder/user consultation

Question 18

What 4 main activities happen at the approvals stage?

Answer 18

1. Building consent processed
2. Working drawings and design detailing
3. Sign contracts
4. Prepare detailed safety, construction and quality plans

Question 19

What 7 main activities happen at the construction stage?

Answer 19

1. Details approved for construction
2. Subcontractors tendered
3. Manage construction contracts - meetings, inspections, report progress etc.
4. Meet authority conditions
5. On site work
6. Monitor market and feasibility
7. Plan for commissioning

Question 20

What 6 things happen at the commissioning stage?

Answer 20

1. Certifications in place for Council sign off for completion
2. Designers inspect completed work - prepare remedial list and complete building consent conditions
3. Building manager and staff inductions to building
4. Building handover from contractor
5. Tenant fitout work commences; owner may need to complete services
6. Bedding down period before official opening

Question 21

What 4 things happen at the asset management stage?

Answer 21

1. Review whether it meets expectations
2. Maintain watch for opportunities to improve value
3. Re-development audit when major lease endings are upcoming
4. Building manager role - maintenance plan, BWoF, monitor operational costs

Question 22

What are the 4 stages in the asset life cycle?

Answer 22

Develop
Growth
Ageing OR redevelop
Obsolescence OR growth

Question 23

What is value management?

Answer 23

Assemble key parties and get clarity on development requirements to ensure the best solution being developed

Question 24

When should value management take place?

Answer 24

Within each development stage to determine needs and best solution (value engineering)

Question 25

What is a value management study?

Answer 25

2 day workshop usually during phases 1-4 to bring together range of stakeholders to co-operate.

Question 26

What are the objectives at each stage of the development process?

Answer 26

1 - understand why it all works 2 - get it right 3 - make decision and resource consent 4 - plan handling of risks 5 - execute contracts 6 - construct to programme and budget 7 - verify performance criteria 8 - monitor improvement opportunities