Speculative Development is the term used for the futuristic development of an entity or the industry and the products involved in the business. Speculative development is the complete process involving many different aspects. These processes range from the initial planning stage to the overall control stage of the speculative development.
Speculative Development Defined
Speculative development is the phase wise process of planning and implementing the strategy and the processes independently. It is mainly concerned with the targets set by the business for their development over the years. It usually relates to the development of a particular project and to the completion of the project which is intended to be done in the given time keeping forth all the given constraints of the project. These may be the constraints relating to the resources available for the project either the financial resources or the human resources.
Speculative development is focused on the availability of the resources and the time for the completion of the project. This is developed into phases and with the help of predetermined targets and goals set in the mind to complete the project and get it done in the right and appropriate time.
Speculative development is a continued process and is done in hierarchical stages according to their priority and needs. Different processes are involved in the speculative development at different stages, and these processes are as follows:
Preparing a feasibility report is the first and the foremost phase of the project involved in the development phase. Feasibility report deals with the overall viability of the project and that includes determining whether the project is economically, socially and operationally viable and can go on to generate cash flows in the future; whether the cots incurred to complete the project are more than the benefits derived from the project, or vice versa.
Feasibility report addresses all the matters relating to the development of the project and the inclination of the project in terms of the reward it can fetch from the market after the completion of the project when it is realized. These matters deal with the economic aspects of the project to evaluate the amount of input and effort involved in the project to complete the project and the amount of effort involving all the resources either implied or supplied to the project. It will cover the costs of the project over the benefits derived from the project and the amount of cash flows expected to be generated from the project in the near future or the entire term of the project.
Economic feasibility is the first and foremost step in determining the cost effectiveness of the project and to conclude whether the project should be continued or not. Economic feasibility is responsible for the carrying on of the project to the next stages of the project.
Social feasibility may be understood as the feasibility study carried to understand and comprehend the social structure of the place or the location in which the project is intended to be developed. Social structure involves the customs and traditions of the location where that development is to be made. Considering the social factors governing the nature and habits of the place it can be assessed whether the project can go on to lie according to its expectations in the future for the time it is supposed to be carried on.
Social feasibility is done while keeping in mind that either the social structure of the project place permits the project to carry on within the certain social circles; i.e. whether the social structure prevailing in the area will allow the project development to go on or not. Sometimes the social structure does not allow a particular project to work of its own in the social boundaries fixed by the society therefore it is necessary to conclude in the feasibility report all the matters relating to the social feasibility of the project.
Operational feasibility is the term used for the operational success of the project. If the project is not operationally viable no matter how attractive that may seem there is no need to carry on the project for the development. Operational feasibility deals with the working of the project and the fact that how much the employees working for the project are satisfied with the project or are there any constraints on the rightful working of the project. Constraints on the working of the project means that the project will be continued to work as it I supposed to be and there are no foreseeable reasons that the project will come to a halt due to one or another thing. Operationally the project will be possible to do and it will complete its lifetime that is expected. If the project’s feasibility report is concluded than the next stage of speculative development is concluded.
Strategic planning is phase which comes after the feasibility study of the project is successfully carried and there is every reason to start the project. Strategic planning is the process that governs the overall planning of the project and describes the way in which the complete project is to be carried on in the implementation phase. It tells the project manager about how to do the work and how to make the subordinates to carry on their duties efficiently. All the planning is done by keeping in mind the fact the time is of essence in the development of the project and time costs a lot to the developer. It will confirm that the resource required to finish the project are in hand and if they are to be acquired then from where they are to be required. This stage also involves the accumulation of the capital or the gathering of the loan from the financial institutions.
Strategic planning governs the overall scope of the project development and it is the phase where the do’s and not to do’s of the project development. All of the speculation of the development phase is to be considered in this stage and it is concluded that how the project will go on to live up to its expectations in the future. Managing the speculation development is a daunting task within itself because it considers all the aspects of the project development and those aspects are to be estimated at the planning stage. This estimation has to be perfectly alright and accurate for the project to be successful in the future. The scope of the success of the development project will depend entirely on the estimates derived from the past experiences of the person responsible for the projection of the estimates.
Apart from the operational and the financial planning of the project, other planning activities are made and then based on those activities project development is concluded. These other planning activities include the marketing and advertising planning of the speculative project. In this all the marketing and advertising strategies of the development project are determined and made to work appropriately according to the targets set by managers. All the resources required for the project are assigned to the project. Planning deals with the complete handling of the project and the estimates made for its completion. These resources are to be allocated exactly the same way as they are planned otherwise the project will not work properly and the results will not remain adequate due to overspending of resources. Sometimes a project may require simultaneous working of different stages of the project. In such a case it is extremely important for the project planner to take in account the timeliness of the activities needed to be carried on simultaneously. It is extremely important in this case to determine the time and stage of the activities otherwise the whole project may be effected and may result in the loss of resources. Such a planning requires minute observation of all the processes involved in the process and thus governs the working of the project.
Constraints affecting the working capability of the project are kept in mind while planning for the project. Speculation development is the development of the project which is speculated that is the project has not come into existence when the project is being planned rather it is made to be planned the way that all the matters effecting the project are to be overlooked. All of the resources involved in the project whether directly or indirectly are looked keenly for any future problem arising from those resources. If any of the resources is in less quantity and it is feared that this will cause a lot of problems in the later stage of the project development then a provision for such a resource is made prior to the actual working on the project.
Constraints can be due to different resources. Some of these are the financial constraints, labor constraints and the time constraints.
Financial constraints are the constraints relating to the financial needs of the project. Capital is the major aspect governing the whole of the project and may have an adverse effect on the project if it is not adequate for the completion of the project. Financial constraints may cause serious problems for the project manager as the whole project will come to the halt due to the non availability of adequate financial resources.
To avoid financial constraints it is required to plan the project in the way that it will fit into the capital available for the completion of the project. However increasing the amount of capital may result in the overspending of the resources therefore the best approach will be to plan the entire project in the way that it fits into the amount of capital available for the use of the project. It is the best approach for the project development; this way, resources can be utilized efficiently and economically but it should be borne in mind that the amount of capital available should never be less than the minimum amount required for the completion of the project.
Labor constraints are the constraints relating to the availability of the labor. In the case if the number of human resources is less than the number of human resource required to complete the project or the number of labor hours available is less than the number of labor hours required to complete the project then the situation will be of the labor constraints. Labor constraints is also a very important point in the project development and should be dealt with prior to the commencement of the project as labor is also a very important resource and should better be used wisely.
Time-constraint is another type of constraint involved in the planning of the project. Time has always been of essence in every type of business; any business activity done at appropriate time yields a lot more than the same activity done at inappropriate time which may result in loss eventually. Strict timing is to be met while executing the project along with the sustained good standard. All the development projects when planned are made with the viewpoint of exact timing needs.
Control is another stage of the process of project development. After planning when the development project is implemented and executed it is necessary to govern the activities of the employees and the resources allocated to assess whether the resources allocated are according to the planning made prior to the development of the project. For the purpose of implementing the proper controls over the project development project managers and project coordinators are assigned their duties who are responsible for the completion of the project’s activities in the allotted time. These controls are implemented in the way that they align all of the available resources into a place from where these may be accessed easily and their misuse is restricted. Controls make it sure that every step of the project development is executed in the given time and all of the resources required to finish the work in the time allotted are available for use so that no time is wasted in the finding of the resources.
Assessment will be made of the workings of the professionals and the workforce involved including the time management and the financial constraints of the project. If there is any negative deviation in the implementation phase of the project then it is changed by making dire and bold decisions in whom it is tried to convert the negative effect into a positive and if that is not possible then at least reducing the negative effect.
When the speculative project development is conducted it is borne in mind that the building made fulfills all of its intending and expected uses and is useful in the future. It should also add to the society or location where this project is to be carried because if a project does not yield anything then there is no need to spend the limited resources available on the project. Buildings should serve all the benefits which are required from it to its users. If a speculative project is of good nature and offers good returns to the market then it will straight away have very good value in the market and the tenants will be more than interested in the project. Nevertheless all the requirements of the market and the tenants and end users have to be considered while making the speculation development.
While making speculative development it is necessary to take into account all of the future opportunities that are available to the developers and that result into a gain on the part of both the seller and the buyer. Future opportunities are the opportunities that the speculative development project will offer after it will be completed and made to launch in to the market. As said earlier that speculative development is a futuristic development project thus there is every need to take care of the future opportunities of the development project.
Clients may have their own specific requirements about the development project therefore those requirements are of utmost importance and are to be kept in mind while preparing for the project. Clients pay for their satisfaction and they will satisfactorily pay when they will be completely satisfied. Final output should be according to the exact requirements of the clients. This will result in goodwill of the developers and his future projects will be caught up very rapidly in the market. Future opportunities should always be taken care of if the developer wants to stay and grow in the market. For the sake of futuristic opportunities it is needed to cater the current market needs and trends and make the final product unique as a safeguard against the competition.
Development project when completed should be the environment friendly and it should not harm the overall environment of the society or its surroundings where the project is going to exist. Government regulations about the environment must be keenly observed before preparing to develop the project. In the recent time all the new buildings made in the world’s financial capital are environment friendly. People nowadays prefer using the places which are environment friendly and leave good impression on the mind and body of the person. Environment friendly projects are the need of the time today. Buildings should use latest state of the art technology to save energy and reduce their power bills. These kinds of projects are a huge success in the recent times.
Speculative development is an ideal working methodology if all the processes in the development stage are carried out with precision and accuracy.
This section is about the www.waystone.co.uk site which takes into account the need to develop their projects of Glasshoughton and Barlborough and making good results from the project.
The site is located in the ideal place of the city with access to all of the utilities and facilities the city can offer. Speculative development is the one which is approved but is not started yet whereas the actual development is the one which has either been started or improved. There is every possibility of getting good results from the speculation made prior to the start of the work and it will fetch the same results as speculated in the near future.
The project under consideration will have very good financial appraisal as per the requirements of the market. The total investment is going to rise with a noticeable rate in the future. Any investment made in the announced schemes will result in an ultimate appraisal in the future periods. It will satisfy all the needs of the users consequently showing good satisfaction in terms of the use of the buildings as well as in terms of the financial appraisal.
The selection of the chosen scheme of Glasshoughton is the more productive one in the way it is more responsive to the current market needs and the user requirements despite the fact that that both of the fields are very good but the one said above is more attractive of the two due to its massive size and availability of luxuries and user facilities for the site.
Drawings are the sketches made on the paper sheet by the sketch drawer. Working drawings are the drawings of the project intending to be developed prior to the commencement of the production. This will ensure that the project is made up to its specifications and is exactly according to its requirements. All the needs and requirements are keenly observed while preparing the drawings and any changes required are executed for the betterment of the project. While making drawings it is made sure that all the performance specifications are met by the builders and the project is executed according to the plan. Nowadays these drawings are projected on the computer aided design which gives more useful and productive overview of the project.
Site: Midland’s central park avenue
30 * 3 bed Flats on 6000 sq.ft. of commercial space.
This site is a very good one with all the access to all the ideal places of the city and is the commercial one. This has very attractive future prospects and will result in financial appraisal in the coming years.
This site is of the plain and barren land which has earned good reputation as a commercial one with good commercial aspects over the past few years. As a residential land it will ideally fit to the dream living style of its residents offering a very unique view of the city and excellent facilities available for the dwellers. The demand of the site has gone up rapidly over the past few years and the raising trend is expected to continue in the future years too.
This is a very lucrative site and any person living here will be fully satisfied and consider himself the lucky one.