Southland takes on all the construction risk, and this is our expertise, backed by a proven track record at the highest level in the capital markets. When companies and Pension Funds attempt to handle property projects in-house, they often face challenges. Initially, they typically employ traditional forms of contracts, where consultants act as agents and contractors operate separately. However, this approach is not aligned with global best practices for investment projects. Traditional contract structures are ineffective at managing construction risk and are systematically prone to disputes, representing the very definition and embodiment of construction headaches.
Traditional contract structures also struggle in managing stakeholder interests, leading to almost inevitable negative outcomes such as significant variations, inflation, conflicts, time slippages, and a failure to deliver within budget.This systemic weakness results in projects becoming more expensive, and Pension Funds or Corporates rarely generate profits.
In contrast, Southland employs the global best practice Design to Build or EPC contract, which is the most effective tool for managing construction risk. Our development role, coupled with this form of contract, ensures that buyers or investors are consistently insulated from additional costs. Southland takes all necessary measures to guarantee this, and investors, as off-takers, do not participate in the risk. The fundamental role of Southland as a property company is to seamlessly bridge the construction risk process altogether.
