Wealth Opportunities in Commercial Real Estate: Management, Financing, and Marketing of Investment Properties

Design and Construction Drawings

Okay, the developer has approved the contingencies in the contract to buy the dirt, has his equity and financing in place, and then closed escrow and purchased the land. The developer, if he has not done so already, must select an architect with whom to work. The choice may be obvious if the developer is seasoned and has successfully worked with a particular architect on this type of project in the past. However, if the developer is starting out or has not developed this type of project before, then a selection process should be established. Face-to-face interviews with candidates are essential. The developer should understand who is going to do the preliminary work, who will do the construction drawings, who will oversee the project to ensure compliance with the plans and specs, and so on. Often, in a large architectural firm, you might meet with the chief architect only to find subordinates actually doing the key work. This might be acceptable, but it should be an informed choice with a possible caveat that the senior partner remains primarily responsible for the services and is required to sign off at all of the crucial steps.

Once an architect is selected, a contract should be entered into. Usually, the American Institute of Architects (AIA) form is utilized. Bear in mind that this agreement is drafted to protect the architect. From the developer's perspective, modifications to the form should be made or a different format might be utilized. ...