A Redevelopment Project is fundamentally different from a conventional construction project. It is a multi-dimensional process that deals not only with construction but also with people, regulations, finance, emotions, and legal intricacies. Redevelopment is often laden with uncertainties, delays, and complexities, particularly during the Project Formulation Phase, which is usually prolonged and uncertain.
One of the primary reasons for complexity is that the client is a Co-operative Housing Society (CHS) — a body of residents who are not professional developers or project managers. Their unstructured functioning, limited expertise, and diverse interests often make project coordination and decision-making extremely challenging. If the process is not planned and executed professionally, it can stall or even collapse entirely.
Some Common Challenges Faced in Redevelopment:
Collective Decision-Making:
Since CHS decisions must be taken through majority consensus in General Body Meetings (GBMs), reaching an agreement among members — many of whom are senior citizens or first-time decision-makers — can be a slow and emotional process. Fear, misinformation, personal conflicts, and lack of mutual trust often become major roadblocks.
Complex Legal and Contractual Documentation:
The project involves numerous legal contracts such as the Development Agreement, Power of Attorney, Consent Forms, Bank Guarantees, and Individual Agreements, which require expert legal scrutiny and member understanding.
Changing Regulatory Landscape:
Redevelopment projects are vulnerable to frequent amendments in building regulations, FSI policies, municipal guidelines, and government circulars. These changes can impact project feasibility, costing, and timelines.
Inexperience or Inefficiency of PMC:
The Project Management Consultant (PMC) is crucial for project success. If the PMC lacks technical insight, redevelopment experience, or a proactive attitude, the society may face delays, substandard execution, or financial risks.
Unethical Behavior or Hidden Agendas:
In some cases, developers, brokers, or other agencies may pursue their vested interests, leading to biased decisions, lack of transparency, or conflicts of interest. Similarly, internal politics within the society can derail progress.
Financial Constraints and Mismanagement:
Improper rent handling, delayed corpus payments, disputes over compensation, or lack of clarity in financial terms can create dissatisfaction among members and legal complications for developers.
Member Displacement Issues:
Shifting to transit accommodations or accepting rental payments can become contentious, especially for large families, senior citizens, or those emotionally attached to the old structure.
Communication Gaps:
Ineffective communication between society members, the developer, and the PMC often leads to misunderstandings, rumors, and mistrust, further delaying decisions.
Delays in Approvals and Liaisoning:
Obtaining clearances from municipal authorities (BMC/MHADA/SRA) and handling various departments (Environment, Fire, Water, Electricity) can be time-consuming and unpredictable.
