The Origin of the Master Development Delivery Model
The Master Development delivery model was originally conceived as a way to accomplish the following objectives:- Create a system whereby limited government investment would ‘’kick-start’’ large-scale projects
- Spur private-sector investment and create a viable private-sector real estate development industry ecosystem
- Enable government regulation and oversight of key aspects of real estate development without hindering project efficiency
- Offset the high cost of infrastructure needed for new projects with a service charge system which passes on long-term maintenance costs to investors
The intended result was a form of PPP (Public Private Partnership) which could be rolled-out on a large scale with the flexibility to be adaptable on an individual project basis. The model enables an accelerated rate of development due to the following factors:
- By limiting government investment into the early stages of a project and soliciting private-sector investment to build-out the latter stages of a project, limited government funds can be spread across a larger number of projects
- By creating a ‘’semi-government’’ entity with private-sector systems and processes to control and manage the master development (versus a government ministry), inefficient bureaucracy is largely reduced.
- By allowing the master developer to serve as the de-facto ‘’municipality’’ and organize and control much of the monitoring and technical auditing tasks needed for execution of projects on a large scale, private sector developers experience increased efficiency in the approval process which allows projects to be delivered faster
- By offsetting some or all of the long-term infrastructure maintenance and upkeep required for new projects with service charges passed-on to the private sector (versus handing-over all the responsibility to government ministries), development projects can be executed without the costly expansion of government departments
