Consideration in construction projects
Consideration system (quid pro quo system)
The consideration system is a Greek originality of the post-war reconstruction of Athens and is successfully practiced until today. It is essentially a co-investment project agreement between the owners of a land plot ('LANDHOLDER') and a contractor or construction company ('CONSTRUCTOR'). The constructor undertakes, on his own responsibility and at his own expense, the design and construction of one or more buildings on the landholder's land plot.
Out of the entire separate property (apartments, offices, stores, warehouses, parking spaces, etc.), a part goes to the landholder as a fair exchange for the value of the land plot and a part goes to the constructor as a consideration in return. This system fulfills the landholder's emotional attachment to the history of their property, but also gives them the opportunity to grow their property and earn additional income from rent. In the consideration system, both parties benefit if the deal is fair.
The primary criterion for landholders in allocating final land plots today is the value of the final land plots that will come to them, not just the maximum percentage equivalent value for buildings of dubious quality, a practice that had been shaped by contractors in past decades. Credibility, track record, expertise, talent and vision of the constructor are important elements to evaluate before the landholder enters into negotiations.
With the guarantee of our excellent scientific and technical team and with the experience in the implementation of large scale projects, our company is ready to discuss, evaluate and prepare an investment proposal - a quid pro quo offer in prime properties throughout Greece.