By Jake Zwaagstra, CEO, TriCelta Development
In many cases, the success or failure of a commercial development can boil down to one thing: trust.
While stakeholders can be presented with a neatly packaged plan and broad estimates, without a clear breakdown of costs, data sources or reasoning behind key decisions, this can lead to confusion, second-guessing and sometimes, costly surprises down the line. Transparency is a fundamental quality in project planning, and it starts with an understanding of how every dollar is allocated, how risks are assessed and how the supporting data validates each recommendation.
In order for stakeholders to function as confident decision-makers in the development process, transparency must guide the entire approach. When owners and their representatives provides visibility into costs, risks and long-term implications, they shift from passive collaborators into active, informed decision-makers. That sense of empowerment accelerates projects and builds resilience against the challenges of fluctuating markets and unpredictable environments.
The Truth About Costs
Today’s development landscape is anything but predictable.
Across many markets, rising costs are reshaping the way projects are planned and delivered. Developers across the country are facing escalating expenses tied to materials and labor shortages, all while demand for housing and infrastructure continues to surge. Costs are rising at a breakneck pace, which complicates budgeting and forecasting, and leaning on vague projections can be counterproductive. Cost clarity is a crucial advantage for an owner or developer, and presenting it clearly ensures that stakeholders understand both the risks and opportunities ahead.
However, even with cost transparency, you’ll get the inevitable question of: “Why are costs so high?” The reality is that while a project that might have cost $20 million just a few years ago, with current market conditions, it might now cost upwards of $35 million and potentially even more in the future. Another reality is that construction costs rarely decline over time; at best, they stabilize. A more common occurrence is that they escalate month after month. Being clear about future cost escalation and breaking down line items sets the tone for honest and realistic planning.
Insights from the Outside
After a clear breakdown and understanding of cost, it’s time to budget. This is one of the most important — if not the most important — preliminary steps in the development process, and an effective budget plan is one that is supported by experienced outside consultants.
Contractors and architects provide essential input, although their estimates can vary based on scope, timing or their observations of market conditions. For owners, bringing in a third-party estimator means tapping into current cost data and an objective analysis. This viewpoint can show why the numbers make sense, or why they don’t. Armed with this perspective, owners can ensure that every dollar is spent strategically and in alignment with the project’s vision.
With another set of eyes outside of the day-to-day project contributors, owners and stakeholders can gain greater confidence in their budget plans. This transparent look into cost estimation makes resource allocation more reliable and strategic, enabling owners to negotiate effectively, set realistic expectations and minimize surprises later down the road. In the end, implementing checks and balances streamlines decisions and builds trust and confidence amongst all involved.
Data for Direction
Project decisions are most effective when they are grounded in data. From feasibility studies to post-completion evaluations, transparent development relies on solid information rather than assumptions.
Providing clear and accurate data and being transparent about where it came from helps stakeholders understand the rationale behind it. This can range from environmental, economic and community conditions to determine what is most viable. Some of this data is collected during the due diligence phase and can include, but is not limited to, feasibility studies, traffic studies and revenue and occupancy projections. Without this, decisions are made in a vacuum, and it becomes difficult to evaluate how today’s choices fit into the overarching goal.
When data is collated, analyzed and clearly presented on paper, stakeholders can see not just what is possible, but also what is practical, profitable and sustainable. Data is just another cornerstone in the foundation for informed decisions that helps align consultants, owners and developers around a shared long-term vision rather than short-term fixes.
Unpacking Realities of Project Phasing
Rome wasn’t built in a day. Similarly, not all projects can or should be built in one phase.
That doesn’t mean stakeholders should sacrifice the overall vision if it doesn’t align with their desired timing. Most owners aim to bring projects to market as quickly as possible, but achieving this requires a balancing act of strategic planning and realistic expectations. This is when an owner’s representative opens the dialogue about what can be afforded now, how to achieve the greatest return today and how to future-proof infrastructure for later phases.
By examining the project brick by brick, stakeholders can identify how individual elements contribute to long-term goals, make informed investment decisions and safeguard the integrity of later phases.
It starts with looking at the master plan and translating it into actionable steps. With a clear plan of action, momentum is maintained and obstacles are easier to navigate as they arise, giving stakeholders the confidence to move forward rather than falling into the “let’s wait and see” trap. Phased or not, clear steps, accountability and open communication lead to smoother project delivery.
Transparency as Advocacy
As costs climb and markets shift, unclear or biased communication can quickly derail a project before ground is even broken. With clear presentation of data, validating estimates through third-party review and explaining the reasoning behind every dollar figure, teams build trust from the outset. As an owner’s representative, anything short of transparency is detrimental. This is how owners and developers are advocated for, protected and supported throughout the project’s life cycle, from initial conversations and opening to everything that follows.
Through clear guidance, a good owner’s representative can help the owner make sense of every complex step in the process. When stakeholders leave with a clear sense of costs, risks and strategies, they are not just informed — they are fully equipped to make smarter choices. It’s all about the impact and making stakeholders true partners in the process.
In summation, transparency is the key to building trust, and in today’s development landscape, it isn’t optional. It’s the only way forward.