MDCI Blog

The best way to protect your interests and bottom line is to establish a rock solid fixed-price contract with your main contractors. This should include a project plan and well put together costing for the build and deadlines to meet along the way. It should also include penalties for not hitting those deadlines, as motivators to keep the project on track. Find out more about the importance of a good contract. Click on the above picture for more.

Today we are looking at ways where a project can run into trouble and recommending ways to avoid this for your project. This was a recent case where a foreign developer had purchased land to build and sell villas. They called us in to support them as their Project Manager in Spain, and we uncovered a host of unforeseen and unplanned issues, which were seriously affecting profitability and timescales. - Issues with the plot - Building with an Open Book Contract - No Development Schedule in place - Inconsistencies in billing

Recalling my assignment from Marriott, my first year as their Project Director was an extremely hard landing indeed. Starting with being flown to Orlando Florida from London to be interviewed by 9 executives and given my “orders” and told not to make a mistake “or I’d be dismissed”. However, along with that “incentive”, I was given a wide Power of Attorney to act as needed (a fundamental need for a Project Director as the buck stops with you…). I knew I had an amazing opportunity to be involved in the first Marriott Resort in Europe and was ready for the challenge. Click on the above picture for more.

The returns available from building a villa, hotel, or a development of apartments or townhouses and then selling them on are considerable. This makes it a very attractive investment proposition and has caught the attention of groups and companies outside of the construction and development industry. We’re seeing investment funds, crowdfunding entities and individuals looking to enter into this lucrative market and maximise their returns for their investors, shareholders, or personal wealth.

When delays and costs mount, relationships between the investors and the constructors become strained and finance constraints put the entire project at risk of never being completed. If you can relate to this, and you have a project which is currently spiralling out of control, don’t despair – we can help you! Our Project Rescue team can come in and identify the key issues and blocks, make a plan for solving those issues, and work with you to get the project over the line.

MDCI Project Developer celebrated their 24th Anniversary this year. Since 1999 they have been assisting clients to deliver construction and refurbishment projects in Spain and internationally by offering quality project management services. Over this long history, they have delivered over 100 projects on time and on budget and you can see examples in their project portfolio. Since 1999 they have seen a lot of changes in construction, legislation and client demands and so we spoke to CEO Mark Lawson to find out what’s changed and what people are looking for now in Spanish property.

We are seeing a growing interest in building a luxury villa on the Costa del Sol from “normal” property buyers struggling to find what they want to buy due to lack of stock. Following the pandemic, the real estate market has been responding to pent up demand for properties, and luxury villas in good areas are increasingly hard to find. This is leading to these buyers trying to find other options and considering building their own property.

We recently had an assignment where we were called in to provide a chartered surveyor report on a delayed villa construction. This is a great example of the consequences that can be felt if you declare your project as a minor rather than a major works.

Spanish banks are quite complex when it comes to attempting to gain their finance for projects. We recommend preparing well in advance, as the successful disbursements of loaned funds may still be many months away. They require a lot of documentation that may take considerable effort to source and prepare, therefore starting the ball rolling early is strongly advised.