MDCI Blog

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.

Without a feasibility study it is very difficult to create a realistic project plan and a budget which factors in all potential issues. On larger, more complex projects such as large developments, residential complexes or hotels, there are even more things to consider and the impact of one unwelcome surprise can be enormous.

Our Project Rescue Service seems more and more frequently needed. Most clients are struggling with their budget and their timelines and need us to come in and help them to regain control and complete the project successfully.

This inflation has definitely hit the construction industry hard. We have seen not only price increases, but also a change in the way of working from the construction companies. Previously, there would be a bidding process and client and construction company would agree a price, with a “fixed” guarantee for between 6 and 12 months. Now, we are rarely seeing a builder offering a fixed price for a project.

MDCI’s Founder and CEO Mark Lawson moved to Nerja on the Costa del Sol with his family in 1964. Aged just 5 years old, he joined his parents to make their dream come true – living in the sun and building and running a small hotel.

The most common problem for self-builders and developers alike is running into unexpected problems, issues or costs, and going over budget. The scale of this issue industry wide is staggering.

Unfortunately, the construction industry was already under pressure due to COVID, as the three-month lockdown caused a shortage of materials, and labour supply was affected by teams coming down with the coronavirus and therefore not being able to work. Now they are really suffering from the increase in material costs, as well as the continued material shortages.

As project developers in Spain, we often work with investors to maximise the value of their project, ensure that budgets and timelines are hit and that all stakeholders are informed throughout. We will also work with developers from the very earliest stage to ensure their investment is viable and the plan is sound, through project feasibility studies.