Land Development Playbook

LAND ACQUISITION PLANNING & ENTITLEMENT

Physical land development is the construction period between LD Start and lot turnover to vertical construction. Every project begins with initial negotiations on the terms of the development to be acquired and the associated assumptions that drive the budget and schedule (lot size, product, budget, schedule, market pricing, sales velocity, takedown structure, lot pricing, etc.). This section discusses LD items of importance during initial land deal negotiation, the establishment of base project assumptions, and updates through the due diligence and entitlement periods.

LAND DEVELOPMENT RESPONSIBILITIES – LAND ACQUISITION

A Land Acquisition (LA) team will utilize the standardized substantial completion section (as discussed below) as a basis in the PSA terms. LA team will provide the LD team with the draft Substantial Completion section for review and signoff prior to contract internal final approvals and execution. A Feasibility budgets will be created that match the standard template and format with appropriate cost codes. A The divisions are to submit draft LD schedules and budgets to NLD for review and recommendations for the division’s initial AMC Budget and associated schedule if over $10M. However, every AMC submittal shall have an LD schedule for AMC to approve and establish AMC approved dates. A If plans are approved, the budget is to be supported by actual bids ready to contract. Division to follow bidding policies (see previous Bidding and Contracting section). Contracts should be drafted and ready to execute to begin work within 30 days of AMC approval. If plans are not approved, the budget is to be supported by contractor/consultant proposals based on the plans that exist at the time. Engineer estimates alone are not acceptable. Engineer estimated quantities may be used, but historical or current unit pricing provided by Trade Partners must be implemented. A Contingency to be maintained per standard requirements (see previous section). A Third Party budget review may be engaged by an NLD approved entity as determined on a project by-project basis by NLD.

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