Level 3 - Project / Development Briefs

Question 1

How would you take the project brief?

Answer 1

3 Stages of developing and defining a Client’s brief - typically through several workshops:

• Statement of Need
• Strategic Brief
• Project Brief

Question 2

What are KPIs?

Answer 2

Key performance indicators - metrics used to evaluate if a project has been successful.

KPIs include:

• Cost
• In programme
• Client satisfaction (feedback)
• Comparing performance between projects

Question 3

How would you develop the success measurement criteria and benefits of a project to a client?

Answer 3

You identify the success measurement / KPI through the briefing process, as you put together the project brief.

Question 4

What is a Residual Valuation?

Answer 4

Residual Valuation:

• Appraisal of development to calculate residual site value
• Need to deduct development costs
• Allow for profit from the Development’s total capital value

Question 5

What is a Development Appraisal?

Answer 5

Method to assess the profitability of a project.
Typically takes into account the GDV which includes:

Costs

• Land acquisition
• Construction costs
• Professional fees
• Planning
• Finance
• Marketing agency fees for selling or renting

Outputs

• Development Profit
• Profit on Investment cost (Internal Rate of Return)
• Yield on cost

Question 6

What is sensitivity analysis?

Answer 6

Analysis understanding the variables of different market conditions:

• Yield
• Rent,
• Inflation

Understanding these to ensure the project can still be profitable under different market conditions.

Question 7

What is the difference between a development appraisal and a feasibility report?

Answer 7

Development appraisal is focused on costs and profitability.

Feasibility report - will look at the detail of the design proposal, and include:

• likelihood to get through planning,
• the viability of the programme and
• suitability of budget and contingencies in relation to the perceived risks of the project.