In this episode, Kieron and Jonathan delve into one of the most challenging aspects of property development: build costs and construction risks. They discuss the impact of rising material prices, labour shortages, and the importance of effective communication between developers and contractors. The duo share their real-world experiences regarding the need for detailed planning, collaboration with trusted teams, and the significance of managing construction risks to ensure project success. KEY TAKEAWAYS Accurate estimation of build costs is crucial for property development. It's essential to consider local market conditions, material prices, and labour costs, which can fluctuate significantly. Maintaining open lines of communication with contractors and team members is vital. Discussing potential issues early can prevent misunderstandings and costly delays later in the project. Investing time and resources in detailed planning and design can minimise changes during construction. A comprehensive construction package of drawings helps avoid unexpected costs and delays. While it's impossible to eliminate all construction risks, developers can manage and mitigate them through careful planning, fixed-price contracts, and regular cost reviews with contractors and quantity surveyors. Establishing strong relationships with contractors and suppliers is key to successful property development. Trust and collaboration can lead to better outcomes and help navigate challenges that arise during the construction process. BEST MOMENTS "You make your money when you buy the site. But you keep it when you control your build." "Construction is high risk and it's high risk anyway because the margins are tight for contractors." "If you haven't got your prices secured or orders in before COVID, you were caught short." "The worst thing a developer could have is where their contractor goes, thanks, but no thanks." "Spend the money with the architect in planning that construction package of drawings." 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. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.propertydevelopersplaybook.co.uk/