Over 70 percent developers felt that major changes have been made in both customer and vendor agreements.
Almost half of the real estate developers have no formal process in place to manage compliance mechanism of RERA and about 44 per cent have made some modifications to their MIS (Management Information System), says a report titled RERA: How you are gearing up for Compliance by Grant Thornton in India and FICCI.
Managing RERA compliance is the utmost priority of the developers. However 45 per cent of the developers have no formal process in place to manage compliance and about 44 per cent have made some modifications to their MIS, it says.
The survey report that compiles the key findings of the joint survey conducted to assess the readiness on the compliance side of the real estate developers, also reveals that majority of the board/senior management (78 per cent) are using common methods like Excel based MIS reporting to review RERA compliance.
“Like any other major reform, RERA has its own sets of initial challenges, which are causing disruption in the sector. However, everyone including the developer fraternity, is positive about the long-term impact of RERA. The survey has pointed out some very interesting perspective on how developers are gearing up for this big change and making appropriate changes to their systems and processes in addition to identifying areas where more focus is needed,” says Neeraj Sharma, director, Grant Thornton Advisory Private Limited.
When asked about the initiatives taken to strengthen project planning for timely completion of projects, more than 50 per cent of the respondents expressed that a focused approach to enhance skillsets of internal teams with training is crucial. In fact, over 75 per cent developers have used training as a tool to improve customer experience.
However, 37 per cent respondents felt the need to hire independent experts as Project Management Companies (PMCs) to manage their projects.
When it comes to the agreements that have undergone changes in their key terms post RERA implementation, more than 70 per cent of the developers felt that major changes have been made in both customer and vendor agreements, which establishes that post RERA, developer and vendor share equal liabilities under the contract, the report said.
