What are the stages & reason, where redevelopment projects get stuck?
1. Selection of PMC?
Reason: ‐ Society asks builders to provide their choice of PMC / or members & PMC tries to shake hand and cover each other for the purpose of gains. Other member feels the rat & disputes starts.
Solution:‐ select a PMC who has good track record with other society rather than builder.
2. Tender process. ‐
Reason :‐ society members are divided in groups supporting their builders.
Solution :‐ Ask each member to invite their choice of builder & also publish at newspaper. To fix a principle & criteria to ask members to compile their questions & requirements, ask 300+ questions OR as many as possible for detailed information / study / scrutiny under tender process to each & all interested builder.
Result ‐ only serious & sincere builders will come forward.
3. Appointment of builder. ‐
Reason :‐ Some of members feels that somewhere / something is missing / needs higher offer / lack of transparency .
Solution :‐ Whomsoever builder confirms /replies in writing almost all 300 questions + / fulfils criteria/ agrees to provide all information for scrutiny / presentation at SGBM in presence of all members. Then after stands shortlisted and selected. Result ‐ Members confidence & consent increases. Various level of information / interaction / scrutiny – crosschecking by com members & confirmation by SGBM will/ may help install higher level of confidence among members for appointment of builder.
4. Agreement with builder.
‐ Reason :‐ Members feel loss of confidence to sign.
Solution :‐ A set of 300 question with tender & others from members point of view must be clarified before appointment , same points / terms shall be used to prepare development agreement under techno legal terms. Means Application of all terms within agreement ‐ on site , not at court.
5. Building vacation by members .
‐ Reason :‐ Members feel loss of confidence to sign. ( Ex. 70% of the project / Father to son transfer )
Solution :‐ A detailed agreement with all issue / set of 100 terms to be drafted in simple language and must be explained to all members to be clarified before appointment , same points / terms shall be used to prepare development agreement under techno legal terms. Once members gets satisfied due to clarification at documents, hence becomes confident about builder & vacates the building for construction.
6. During construction.
Reason :‐ members feel the quality is not maintained.
Solution :‐ Detailed / informative terms at tender , further at descriptive drafting of terms at development agreement will provide your PMC / ENGINEER sufficient power & strength to monitor the works during construction. Every month a meeting / SGBM must be called of all members at site to watch & observe , this will safeguard your issue of security / quality / timing on regular basis.
7. During Repossession ‐
Reason :‐ Under 70% case Members feel greatly cheated when they see the actual flat ( less carpet area & lack on promises made / terms agreed by builder while submitting offer.
Solution :‐ Under agreement society must keep one saleable flat of 1000 sq ft lien / mortgage in favour of society and Rs. 50 lacs of security deposit and 25% bank guarantee to be released only after BCC. If any works / amenities / material / documents / promises are missing , society can utilises the guarantees to fulfill the left over promises, otherwise go to court for another 10 / 20 years.
For members ‐ 99% of Ego & ignorance & innocence & greed must be controlled to succeed.