Fee-DEVELOPMENT

Fee development (from English fee, remuneration, contribution), when the developer is hired by the customer as a contractor; in this case, the developer does not invest his own funds in the construction, he is responsible for the quality with his reputation.

Fee development - this is the company that works under an agreement with an investor and receives remuneration stipulated by the agreement for its organizational activities.

Fee development - this is a direction that implies that the company prepares a concept, chooses the most profitable financing scheme, develops and organizes a real estate project, and manages construction.



Within the framework of this direction, a set of works is being carried out:



- Choice of development model and project organization to implement them on a turnkey basis

- Creation of detailed programs, in accordance with established budgets and deadlines for each project

- Design work

- Architectural and design concepts

- Development of a healthy surrounding landscape

- Support barrier-free environment

- Organization and development of all services for research, design, preparation and implementation of restoration work in historical buildings.

- Construction and repair work

- Escort and project management




How much do fee-developer services cost?



The order of payment for services depends on the initial agreements, the tasks set and the results of the development of the project. The fee-developer's remuneration can be formed in different ways. In most cases, this is a percentage of the total project budget. Depending on the functions assigned to the fee-developer, the remuneration under this scheme will be in %. When building a small facility, when the absolute figure of remuneration, taken as a percentage, is small, the developer's remuneration can be designated as a fixed amount per month. There are also examples where fee-developer works according to the open book principle, that is, it presents to the customer for compensation the actual overhead costs incurred and takes a fixed percentage in the form of profit from above.



Another possible option is that the management company receives a monthly remuneration in the form of a percentage of the budget plus promote. Promote is an additional bonus, namely the share in the project that the developer has after the key investor has received back the invested capital and income from the project. Such a scheme is beneficial to both parties: the investor can be sure of the quality and timing of the project, and fee-developer understands that income directly depends on performance.