AboutPeter M. Elliott Expertise First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only.
Experience Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit.
George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')
Question Our mother passed this last year, after living almost 60 years on the same property. Property consists of 9 lots, 3 of those wooded, the other 6 very fertile and established and 'workable.' City improvemetns such as water and sewer, etc. are available to all 9 lots. This property is located in a rural area about 12 miles out of the nearest, sizeable town of about 30,000 residents, in southern Illinois. Roads to the town and property are in good condition.
We're needing to do something with the property. It has her old house on it, and it's a huge, sorta-ok, 2-story house, but of course needs a gazillion repairs and updates - more expense than the house is worth.
We feel there could be some potential to demolish the old house and make a very nice, modern-day subdivision out of this property, with 5-6 beautiful new brick homes scattered on the various lots. What we'd ideally like would be to join forces with a developer and be able to A. make a fair profit and B. make some rules such as type and size of home there and perhaps name the subdivision after our family name.
Could you recommend some steps to take to get that accomplished? For example, where might we find parties interested in this kind of development? Are they just in the yellow pages under real estate: development? Do we offer to simply sell to them outright with stipulations on home specs and divison name? Do we need to cough up some money and do a partnership on a 'test' home, split 50/50 with the developer? What type of professional would be the best help to us, an attorney? a commercial real estate agent? a banker? other? So to summarize, I'm intersted in the basic steps a property owner should take in turning land into a residential real-estate development.
Thanks very much for any suggestions or ideas or referrals. Chris James
Answer Hi Chris,
I wish I had your problems. I have no direct experience of companies in your area and really this subject is too large for an instant reply. However, here are some general notes.
It really depends on how much experience and willingness and time you have. The return should match the investment, especially knowledge. If you are not pressed to solve the matter quickly, then you have time to study the legal situation and to investigate the various companies in your area.
Whatever you do, take as much time as possible and talk to as many people as possible, especially new home buyers or self build. There are lots of books on self build, the joys and problems. These books will give you a good basic grounding of what you can and cannot do. Many people develop a plot such as this by building one house per year and living in it while building the next, either themselves or by supervising local labour. It all depends on the local tax situation. If you decide that you cannot develop the plots yourself, at least you will know what questions to ask a developer in order to achieve your hopes.
Whatever you do, keep a written record of EVERYTHING, including telephone calls and meetings with EVERYONE. Also learn about mechanic's lien and the various safeguards for all involved.
A search of the web using appropriate keywords will give you almost too much information, but you are not going to decide on this in a hurry!
