publications / is real estate management necessity or luxury?

Is Real Estate Management Necessity or Luxury?

1. Services on the real estate management have begun to spread in Kyiv a little bit later than development. It is well-known also that capital’s market of the commercial estate property is still developing. Is it possible that development of the management was postponed since main actors of the market are working mostly at the production, i.e. development and search of the investors? What are the other reasons?

S.B. I think not all the companies have reached the point where one understands that management of the construction projects constitutes separate business. There exist several reasons behind that. Firstly, construction management entails absolutely different expenses which do not belong to the finances designated directly for the process of the creation of the object. Secondly, as you understand management of the complicated processes requires highly qualified and experienced personnel of the management companies. Only experience and knowledge can serve as a basis for the work of such team however there are not so many companies which possess it.

Of course I cannot stand to mention the odd fact that today many businessmen, companies and even banks(!) have become builders. For me personally it is surprising.

Till the market will swallow “experiments of the new constructors” we all will remain newcomers. Once the time of the serious competition comes the victory will be gained by the company which is able to implement in its project three basics of the constructions. Those are specific terms of the works accomplishment, costs and quality. Only then the issue of the construction management arises. I dare to assure that this moment has already come although not everybody has noticed it.

2. Do you think that construction management at this stage is a luxury or necessary daily service?

S.B. See, about twenty years ago people washed there cars using bucket and car-wipe at closest out-of-town piece of water. It is unlikely that today anybody would have such an idea and this is obvious if we talk about car washing. But as for the ‘construction cleaning’ I think we have to wait a little bit more.

The easiest way though is to refer to the experience of our European neighbours whom we anticipate to join. None of their construction projects is implemented without participation of the professional managers. Maybe we should at least give a thought to it if not to copy the pattern.

3. What can you say about its future development?

S.B. I am sure the time will come when such notions as “kickback” and “laundering” will be considered at least as offensive in this country and people as well as state will count money. At that very moment success of any project will not depend on the financing or quality of the building company. It will depend exclusively on the interaction of these components and their management. I assure you this is the future of the construction.

[ Internet source ]

Other publications:
Housing Price Increase: Myths and Reality
Housing Construction Through the Purchase of Bonds. It Is Not That Simple.
How to Avoid Fraud during the Construction of Your House
Structure of the General Contract on Work and Labour
Peculiarities of the General Contract on Work and Labour