Retain greater involvement. Bring in professional expertise. Create a structured redevelopment model.
A Development Management Agreement can provide an alternative structure in which the society remains closely involved while a professional Development Manager manages and coordinates the development process.
A Development Manager is a qualified developer who acts as the professional coordinator and manager of the redevelopment process. The exact scope is defined in the Development Management Agreement.
Development planning, architectural design and project consultants.
Statutory approvals, contractor selection and procurement coordination.
Construction management, scheduling, quality control and project reporting.
Cost planning and financial monitoring within the agreed project structure.
Coordination of sales and marketing where applicable to the agreed project structure.
Member communication, completion coordination and handover.
The source content describes these as potential benefits; outcomes depend on project feasibility, funding, legal structure, market conditions and the capability of the appointed Development Manager.
Project structure, development potential, costs, revenues and responsibilities can be defined and monitored.
The society can remain involved in important project decisions as defined in the agreement.
Experienced development professionals can manage the complex development process.
Depending on the structure, the society may participate more directly in project economics.
The structure can be customised around development potential, funding, member expectations and market conditions.
Reporting, milestones, responsibilities and approval mechanisms can be incorporated into the project structure.
| Area | Conventional Developer | Development Management Agreement |
|---|---|---|
| Land ownership | Society | Society |
| Development management | Developer | Development Manager |
| Society involvement | As contractually agreed | Can be structured for greater involvement |
| Project economics | Based on developer’s commercial structure | Can be structured specifically for the project |
| Project management | Developer-led | Professionally managed under agreed scope |
| Cost transparency | Depends on agreement | Can be structured with defined reporting |
| Decision-making | Contractually defined | Can provide greater society participation |
| Risk allocation | Contractually defined | Can be specifically structured |
| Flexibility | Depends on developer proposal | Can be tailored to project requirements |
Important: A DMA does not automatically provide better economics or lower risk. Its suitability depends on project feasibility, funding, legal structure, market conditions and the capability of the appointed Development Manager.