ABSTRACT
In the early stages of a real estate development project there is uncertainty as to how the project will be affected by external factors such as stakeholders. In the planning and development process there is also the chance that stakeholders will affect project outcomes, which increases the risk of additional costs impacting on the project. There is, therefore, a need for the developer to understand the process in order to determine the total cost of a development with some degree of certainty. The research reported in this chapter aims at identifying costs that arise from the impact of external factors in the planning and development process leading up to final approval by the local authority. The research focuses on direct costs resulting in real payments; even so, indirect costs in the form of internal rates of return and delayed revenues are also discussed. This chapter discusses two approaches to the engagement of external stakeholders and from them offers an appropriate strategy for development projects in the future.
