Construction sites are working at a normal pace during this period, Colliers says
Colliers International has monitored construction works, from foundation to delivery, for projects with almost 750,000 square meters in the last 5 years, of which three quarters in the industrial area, almost 20% in the office area and 5% in the residential area. Construction works are being carried out at a normal pace during this period on the sites monitored by Colliers International specialists or even at an accelerated pace in some cases, amid plans to recover the delays during the state of emergency, when certain construction works were carried out at a lower capacity than normal.
Monitoring of construction works entails involvement from the planning stage and periodic inspections to ensure construction works comply with the initial plans. Verifications consider a number of indicators that vary from the stage of the construction works and the way in which the budget is allocated, to the stage of the necessary authorizations, compliance with contracts or progress in ensuring access to utilities. Each inspection is followed by a report on the development of the project, which provides a very clear overview for the developer as well as for the bank that finances the project.
“The monitor not only follows the evolution of the construction from all points of view in relation to the execution schedule and the conditions initially established, but also represents a link between the developer and the bank, the use of a monitoring service being among the banks’ conditions for financing. Strict observance of the urban coefficients, obtaining all authorizations according to the legislation or carefully allocating costs in the execution budget are just some of the criteria that we, as a monitor, must follow and include in great detail and very transparently in the reports, in a short period of time”, explains Silvia Rusei, Senior Associate Real Estate Management Services at Colliers International.
Construction works on industrial sites and offices monitored by Colliers International is normal during this period, despite the current context, respecting all safety measures to limit the spread of Covid-19. Some projects in which the construction works were carried out at a lower capacity than normal during the state of emergency have even increased the pace, with developers intending to recover any delays or even speed up the works to be able to deliver the spaces to tenants faster.
Colliers International currently provides construction monitoring services for projects with a total construction area of almost 198,000 square meters. Among the most important clients of the company are CTP, Iulius Group (among the most important projects we can mention: Palas Iași, United Business Center (UBC) 1 in Cluj-Napoca, UBC1 and UBC2 in Timișoara), AFI Europe Romania or Impact Developer & Contractor ( with Greenfield Baneasa as a reference project) while the banks with which the company currently collaborates are Raiffeisen Bank Romania, Raiffeisen Bank International AG and OTP Bank Romania.