PRE-CONSTRUCTION

Pre-construction – Phase 3 of Redevelopment

The Pre-construction Phase marks the transition from planning to physical execution in the redevelopment journey. It is a crucial preparatory phase that ensures the project is legally secure, technically planned, and ready for execution. This phase begins once the Letter of Intent (LOI) is issued to the selected Developer and concludes with the receipt of the Commencement Certificate (CC) from the municipal authorities — allowing construction to officially begin.

This phase involves a wide range of legal, technical, and coordination-related activities, many of which can be undertaken in parallel to save time and maintain momentum. The estimated duration for this phase is approximately 11 months, and it comprises the following four interconnected stages:

Stage 1: Initial Preparations

• Active Agencies: Managing Committee (MC), Society’s Legal Advisor (Soc LA), Developer, Project Management Consultant (PMC)

• Estimated Duration: 1 month

• SGBMs Required: None

Key Milestones:

• Issuance of Letter of Intent (LOI) to the selected Developer

• Formal acceptance of LOI by the Developer

• Finalization of lists of:

  • Internal Amenities (e.g., flooring, kitchen platform, sanitary fittings)

  • Common Amenities (e.g., parking, garden, gym, society office)

  • Built Amenities (e.g., lift, fire safety, power backup)

Project Records:

• Copy of LOI

• Developer’s Letter of Acceptance

• Finalized list of amenities and specifications

Additional Notes:

• Simultaneously, the MC and PMC can begin collecting and organizing key society records like property title documents, building approvals, and member data sheets.

• Developer may begin early coordination with architectural and legal teams.

Stage 2: Legal Documentation & Execution

• Active Agencies: MC, Society’s Legal Advisor (Soc LA), Developer’s Legal Advisor (Dev LA), Developer, PMC

• Estimated Duration: 3 months

• SGBMs Required: 1

Key Milestones:

• Drafting and execution of the Development Agreement (DA)

• Registration of the Development Agreement with appropriate authorities

• Execution of Power of Attorney (PoA) in favor of the Developer for liaisoning and permissions

Project Records:

• Legal Title Certificate of the Society’s land (from Advocate)

• Registered Development Agreement

• Registered Power of Attorney

Additional Notes:

• Legal review should ensure clauses related to timeline, compensation, exit clauses, dispute resolution, payment schedules, and default penalties are well-defined.

• Members should be educated about the legal structure through society meetings.

Stage 3: Plans, Approvals & Statutory Permissions

• Active Agencies: MC, Developer, PMC

• Estimated Duration: 6 months

• SGBMs Required: 1

Key Milestones:

• Approval of Architectural Floor Plans by the MC

• Approval of Development Proposal and Flat Allotment Matrix

• Submission of architectural plans to:

  • BMC/MHADA/SRA/Other Planning Authority

  • Fire Department, Environment Department, etc.

• Receipt of all mandatory approvals and NOCs

Project Records:

• Finalized and approved floor plans

• Plan Review Reports from PMC

• Approval of proposal plans and allotment matrix

• Copies of approvals from statutory authorities

Additional Notes:

• Developer begins liaisoning for IOD, CC, Environmental Clearance, etc.

• PMC should conduct technical checks and flag inconsistencies, if any.

Stage 4: Vacating Existing Buildings

• Active Agencies: MC, Developer, PMC

• Estimated Duration: 1 month

• SGBMs Required: None

Key Milestones:

• Execution and registration of Permanent Alternate Accommodation Agreements (PAAA) with each member

• Issuance of Letter to Enter (LTE) – allowing developer possession of the site

• Issuance of Notice to Vacate to all members

Project Records:

• Registered PAAA (Individual Agreements)

• Official Notice to Vacate Units

• Detailed Project Implementation Schedule

• Project Insurance Policy

• Letter to Enter (LTE) signed by Society and Developer

• Developer’s Letter of Acceptance of LTE

• RERA Registration Certificate

Additional Notes:

• Members are either shifted to transit accommodations or paid monthly rent and deposit as per terms in PAAA.

• Developer ensures transit rent agreements are signed, and all utilities disconnected in a phased manner.

• Project Insurance is important to safeguard members’ and society’s interests during the construction period.

Conclusion of Pre-construction Phase

The Pre-construction Phase concludes when the Developer receives the Commencement Certificate (CC) from the relevant municipal authority, allowing physical construction to begin. This certificate signifies that all legal, technical, and administrative pre-requisites have been fulfilled.

Why This Phase Matters

• It ensures legal clarity and risk mitigation for both parties.

• Enables smoother execution in the construction phase.

• Sets clear expectations, deliverables, and timelines.

• Encourages trust-building and ensures regulatory compliance.