Fee-development is a model where a developer is hired by a customer as a contractor. In this arrangement, the developer does not invest their own funds in the construction but is responsible for the quality of the work, with their reputation on the line.Fee-development involves a company working under an agreement with an investor, receiving remuneration stipulated by the agreement for its organizational activities. This model includes preparing a concept, selecting the most profitable financing scheme, developing and organizing a real estate project, and managing construction.Services Provided in Fee-Development:-Choosing a development model and organizing projects for turnkey implementation
-Creating detailed programs in accordance with established budgets and deadlines for each project
-Design work
-Architectural and design concepts
-Developing a healthy surrounding landscape
-Supporting a barrier-free environment
-Organizing and developing all services for research, design, preparation, and implementation of restoration work in historic buildings
-Construction and repair work
-Project support and management
Cost of a Fee DeveloperThe payment for fee-development services depends on initial agreements, tasks set, and project development results. The remuneration can be structured in various ways, typically as a percentage of the total project budget. Depending on the functions assigned, the remuneration can vary. For smaller projects where the percentage-based remuneration might be small, a fixed monthly fee can be established.In some cases, a fee-developer works on the open book principle, presenting actual overhead costs to the customer for compensation, with a fixed percentage added as profit.Another possible payment structure involves the management company receiving a monthly remuneration as a percentage of the budget plus a promote. Promote is an additional bonus—a share in the project that the developer receives after the key investor has recovered the invested capital and earned income from the project. This scheme benefits both parties: the investor can be confident in the project's quality and timeline, and the fee-developer understands that their income directly depends on their efficiency.