The seeds of any ehab project will be sewn by the community on the platform.
Land owners can upload land and assess interest in their plot, whilst potential residents, architects, developers or anyone can create proposals for the future of the space.
A vote takes place, in which all those involved in the development, including locals, residents and architects, decide its basic properties.
The project is then open for bids, contractors and developers can submit quotes, and these quotes must meet detailed criteria. It is made clear upfront that submitting poorly thought out quotes will leave the developer contractually obliged to cover the costs, therefore creating an incentive for developers to provide more accurate quotes. This ensures the homes do not exceed a pre-agreed price, and that from the get go everyone involves knows the costs. All the developers on the ehab platform deliver sustainable housing using innovative construction techniques. The costs and timelines for the factory construction of these developers are built into the project timeline as standard.
Standardised smart contracts are populated with the details from the different stakeholders, these highlight the contractual obligations of each party and the structure of the joint venture.
Then our network of investors are alerted to the opportunity and may choose to wholly or partly fund the project. Their details are added to the standard contracts too and final agreements between the parties are put in place.
These contracts contain a highly detailed step by step forecast and project timeline, complete with deadlines for each step, and penalties for breaking these deadlines. These clauses are all pre agreed, with contingency budgets and variation parameters.
The contracts are launched onto the blockchain, thereby becoming irrevocable.
When these contracts are activated this will trigger a token event, sending the tokens, representing shares in the project, to the different stakeholders.
As the project progresses, every completed step is registered on the blockchain. This triggers a payment to be released, notifies the relevant contractors, and can trigger other digital administrative admin tasks. Also recorded are key performance indicators, agreed upon ahead of time, and verified by the project manager. By measuring KPIs alongside goals and tasks a rich history of metadata can be built up against a company, and individual employees within the company.
The construction is complete. Homebuyers who have seen the progress of the project since the start can now arrange traditional mortgage finance to buy their home.
As home are purchased the dividend payments and returns are automatically allocated to the relevant stakeholders in the JV structure according to the pre-agreed rules of the smart contracts.
We are in test mode at the moment but will soon have test-net based and live tested pilots to illustrate the current inner workings of the MVP.