In the traditional property development model, project managers are often paid a fixed fee or a percentage of the total development cost. While this seems straightforward, it can sometimes lead to a misalignment of interests. A fixed fee can disincentivize the manager from going the extra mile, while a percentage of cost can, in the worst cases, incentivize them to increase project expenses.
A Partnership, Not a Contract
At Impartial Estates, we have pioneered a different approach: performance-aligned fees. This model is built on the principle of a true partnership. Instead of a fixed fee, our compensation is tied directly to the project's success metrics, such as profitability and sales velocity. This ensures that our financial interests are perfectly aligned with those of our clients and investors.
How It Works
Our fee structure typically includes a small, initial retainer to cover the pre-development and planning phases. The majority of our fee, however, is a success-based payment, often a percentage of the project's net profit or a bonus for exceeding predefined performance targets. This model ensures that every decision we make, from sourcing materials to managing contractors, is aimed at maximizing your return on investment.
Benefits of This Model
- **Shared Risk:** We share in the project's risk, demonstrating our confidence in our ability to deliver a successful outcome.
- **Increased Motivation:** Our team is highly motivated to optimize every aspect of the project, knowing that our success is tied to yours.
- **Transparency:** The fee structure is completely transparent and based on objective performance metrics, fostering trust and a strong working relationship.
- **Value Creation:** Every action is focused on creating real value, not just completing a task.
Choosing a development manager with a performance-aligned fee structure is a powerful way to ensure your project is managed with the highest level of dedication and strategic insight. It transforms a client-contractor relationship into a genuine partnership focused on a shared goal: success.