Participation in construction
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Participating in Construction | A Smart Way to Build and Invest Without Direct Costs
Construction partnership is a popular and smart way of building, in which a landowner and a professional builder (contractor or construction company) enter into a contract; the owner provides the land, and the builder provides the capital and technical expertise. The result of this partnership is the construction of a new, modern, and valuable building, the profits of which are shared between the parties.
- Construction at no cost to the land owner: The owner does not have to spend any capital on construction; the construction and implementation costs are borne by the developer.
- Increase property value by building a new building: Old land or dilapidated buildings are transformed into more valuable buildings through participation.
- Fair profit sharing: At the end of the project, the units or building area are divided as agreed between the parties.
- Using the builder’s technical knowledge: A professional builder with a full team of engineers, architects, and contractors completes the project with high quality.
- Save time and increase legal security: With a detailed contract, clear planning, and professional supervision, risks are reduced and the project is implemented on time.
Important tips for successful participation
- 1. A detailed review of the manufacturer's background and her financial and operational ability.
- 2. Drafting a transparent legal contract with the presence of a lawyer and consultant
- 3. Determine the exact timetable, payment method, and profit sharing method
- 4. Consider guarantees and warranties for both parties
- 5. Anticipating special cases (delays, cost increases, changes in regulations, etc.) in the contract