Cover of 71: How To Manage These Problems Every Developer Will Face: Cost, Contract & Neighbour Disputes

71: How To Manage These Problems Every Developer Will Face: Cost, Contract & Neighbour Disputes

71: How To Manage These Problems Every Developer Will Face: Cost, Contract & Neighbour Disputes

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In this Q&A episode, Jonathan and Kieron answer key listener questions covering the core business of property development. They break down how to properly budget for contingencies, how to navigate party walls and neighbour relations as critical project stakeholders, and the mechanics of holding back retentions under JCT contracts. KEY TAKEAWAYS Maintain a 10% Contingency: While 5% contingency allowances used to be standard, modern lenders and developers should aim for a 10% reserve budget to absorb unforeseen site risks and material cost changes. Proactively Manage Neighbors: Treat neighbours as essential project stakeholders by introducing yourself early, providing dedicated contact details, and clearly communicating boundary or service work to avoid costly disputes. Understand JCT Retentions: Holding back a 3% to 5% retention fee (releasing half at practical completion and the remainder after 6–12 months) ensures contractors complete snagging and rectification work. Align Exit Strategy with Tax Structure: Whether you hold a build-to-rent portfolio in an SPV or sell to build up a cash pot, always work with a property-specialist accountant to protect VAT recovery and minimize tax friction. Establish Clear Scope of Works: Prevent disputes between trades or consultants by creating a clear responsibility matrix, holding trade crossover meetings, and owning mistakes directly when issues arise. BEST MOMENTS "Everyone always spends more than they think they're going to. It's just the nature of the beast." "Build that relationship... neighbours are a hidden stakeholder. They care, and they can be quite loud if things aren't going their way." "If you want to build out a good, strong relationship with your main contractor, be open with those sort of things and be forthcoming—don't wait for them to ask." "At this level, you want to specialise. You don't just want general advice... you want a property tax specialist." "If you have cocked up somewhere or made a mistake, just own it and provide a solution rather than trying to hide it." YOUTUBE CHANNEL ⁠https://www.youtube.com/@propertydevelopersiq HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. OUR SOCIALS https://www.facebook.com/jonathan.stobbs.1979/ https://www.linkedin.com/in/jonathanstobbs/ https://www.instagram.com/jonathan.stobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.instagram.com/kieron__shepherd/ https://www.propertydevelopersplaybook.co.uk/ Book your seat now on our 3-day live event, Property Developers Bootcamp https://www.propertydevelopersiq.co.uk/pdblive
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