The construction phase in property development is the period that begins when decisions for the actual construction are made at a pre-construction meeting and end when construction is actually completed. Construction is the real estate improvements required for completion of a property development project, from the infrastructure, utilities and other amenities that support on-site development to the erection of the buildings.
A contractor progress payment schedule is used to schedule when general contractors, subcontractors and suppliers are to be paid. Progress payments are made for work completed and construction projects progress, typically either on a monthly basis or when certain milestones are met. During this phase, development finance is provided.
Property development requires the involvement of the project manager, architect, general contractor, subcontractor, engineer, landscape architect and interior designer throughout the construction phase. Other professional that are typically engaged during the construction phase are an acquisition officer, title search/abstractor, closing attorney, mortgage banker/broker, construction lender, interim lender, permanent lender, escrow agent, grantor/grantee, guarantor, equity investor, general partner, limited partner, joint venture partner, investment committee, marketing manager and tax advisor.