Appartment Project Organization

The choice of project delivery method in effect should dictate how a project is organized. I have

stated many times that projects, especially large ones, can and should be considered like non$-$

living, living things. A new entity should be formed, a Special Purpose Vehicle, or SPV to represent

this. When this is done, then it is essential to decide on how the SPV will be governed, in terms of

percentage shareholding and representation in terms of members of the board of directors $($with or

without voting rights. It is also essential to show how the SPV will operate from a financial

perspective, how tit will be financed $($equity and debt$),$ and what contracts it awards $($construction$,$

maintenance, and others$)$Note that this is a general framework showing the financial $($and legal$)$ operation of the SPV$,$ and

not all projects can or should have all the elements.

Please try to sketch out the project financial structure as shown in the framework above for your

projects.