3E International engineering consultancy is the proud main sponsor of FORBES’ „Top Real Estate Investments in Hungary” toplist. The category for Offices, Hotels, and Retail has just been announced. Our PR content (positioned within the list) introduces 3E Group’s Construction Management services for Investors and Developers. The English translation is as follows.
You may find the full list following the link below:
https://forbes.hu/extra/2021-legnagyobb-ingatlanberuhazasai/list.php?category=office-building
Many uncertainties currently plague the construction industry: Supply chains have become more unreliable, temporary materials and labour shortages are common, and some hard-to-source equipment often needs to be substituted. In the classic general-contracting model, problems are often notified to the investor only after a significant delay, resulting in additional time and money losses throughout the project. However, to effectively pressurise, let alone replace, a general contractor once a project has started can often prove to be extremely problematic. Be that as it may, property developers can reduce their exposure and increase control over their projects by choosing the Construction Management service offered by 3E Group.
3E Construction Management acts as a third-party services provider to deliver developers the added value a general contractor is expected to provide. The project has a “face” – a responsible party – but contractual relationships are established directly between the developer and the contractors, and they include 3E Construction Management appointed as the functional and legal coordinator. For one, this will reduce costs, but even more importantly, it will also limit exposure. “If a general contractor tells you after six months that the concrete or the air handler have not arrived yet, or that there are no painters, what could a developer do?”, asks Gergely Laczkovich, Executive Director of 3E International Kft. “They could, theoretically, threaten, withhold money, enforce liquidated damages, or even fall out with them, but that would not erect their office building now, would it? They have no direct means of intervention, and are left at the mercy on the “willingness”, capacities and intentions of a general contractor who can only be influenced or replaced with severe legal and financial consequences.”
In the 3E Construction Management model, on the other hand, it is easier to exert influence over or replace a supplier or contractor in case of problems, and moreover, competition among such companies is much fiercer than among general contractors. “Some of our office projects currently under way are already using this model, and banks have also come to realise that more risks can be neutralised this way compared to the risk of having no general contractor, so they simply make this type of structured financing possible,” adds Balázs Korintus, the other founding CEO of the engineering services group.