Handling Delays in Project Completion

in Project-management

Indian Real Estate sector has been witnessing a major problem during the recent years, with the delay in completion of project. There are many issues related to this delay; like the change in fiscal policies, political unrest, delay in supply of materials, government approvals and unskilled labourers. Thus we cannot hold the developers completely responsible for the delay.

It is not a hidden fact that some developers have keen interest in delaying the projects to increase their profits. They collect around 80 to 90% of the amount from the buyers and invest in more lucrative projects. The tug of war between the new and the earlier projects results in the delay of the former project.

It is a fact that a credible and genuine developer will never indulge in such immoral acts. It is their reputation which remains at stake with the delayed projects. More the delay in projects, more the buyer has to spend and the more he gets exploited. So what are the measures a buyer should take to safeguard his interest?

A good check of the developer’s past performance and projects which showcases their credibility should be checked. The buyer  should check for the document such as blue print, no objection certificate, development agreement, power of attorney, commencement certificate, search report of the builder’s advocate, receipts of payments made to the builder, letter of allotment, receipts etc. Scrutiny of these documents is to be made so as to make the stay at the place hassle free.

And at the worst scenario if the buyer meets with delay even with a credible developer, Legal option is considerably the wisest option. If the buyer plans to opt out, a credible developer will be able to give back the money, but the buyer will not be able to find a new place for the same amount due to the increase in land rates and other related rates. Also there is chance for the delay of the new project in which he invests.

The buyer has an option of filing a complaint at the consumer court. According to the consumer act the buyer is entitled to get the money back with the interest or if the consumer does not want to opt out he will be financially compensated along with the allotment of apartment by the developer. The case filed really diminishes the credibility of the developer and thus his market value goes down resulting in lesser demand of their flats.

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Joe Vadke has 2 articles online

Galaxy Builders are the top builders & developers in Calicut, Kerala. Trusted builders in Kerala,with prestigious  real estate projects and creating lifestyle homes in Calicut.

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Handling Delays in Project Completion

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This article was published on 2012/04/26