Key Due Diligence Steps for Land Development Projects
Updated: Sep 28
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Why Due Diligence Comes Before the Purchase
Due diligence happens after you find a site and before you commit capital, while walking away still costs little.
A site can look shovel-ready and still fail on floodplain, drainage or utilities, so engineering review belongs in the contract period.
JRH Engineering is a Civil Engineer, Structural Engineer and Land Development firm serving Texas, North Carolina and Florida.
JRH guiding principles are: Engineering Excellence. Delivered on Time. Built on Value.
Key Due Diligence Steps
Title and survey: confirm boundaries, easements, platted status and setbacks (by others)
Environmental review: Phase I and, if needed, Phase II environmental site assessments (by others)
Geotechnical report: soil type, expansive clay and groundwater (by others)
Zoning and jurisdiction: city, ETJ or county, plus drainage districts and MUDs
Floodplain and drainage: FEMA zone, fill mitigation and detention pond footprint
Utilities: water, sewer, power and gas availability, capacity and extension cost
Access: driveway permits and state DOT frontage
Buildable area: what remains after detention pond, floodplain, setbacks and easements
What a Civil Engineer Adds
Early detention pond and floodplain sizing to confirm buildable area
Utility availability review
Jurisdiction and permit path identification
A clear go or no-go recommendation before closing
Project: Due Diligence Studies, Texas
JRH's feasibility case studies show how early review can prevent a bad purchase.
HWY 6 mixed-use site, Manvel: floodplain fill and compensatory storage would have consumed too much acreage for the apartment program
Restaurant pad, Fuqua, Houston: an outdated detention pond claim failed current City of Houston criteria requiring 100-year conveyance to the detention pond
Whiskey distillery site, FM 1322, Lockhart: permitting was workable, but natural gas was unavailable and could not be extended at a reasonable cost
Challenges
Each site looked workable from its listing
Floodplain, drainage and utility limits were not visible without engineering review
Objectives
Confirm whether each site could support the intended use.
Give each developer a clear decision before purchase.
Solutions JRH Engineering Provided
Land development feasibility reviews covering floodplain, drainage, utilities and permit paths
Floodplain modeling for fill and compensatory storage
Review of existing detention pond claims against current City criteria
Utility feasibility checks, including natural gas availability
Results:
Three developers avoided costly acquisitions
Each decision was made before closing
Capital stayed available for better sites
Due Diligence in Texas, North Carolina and Florida
Texas
Houston-area detention pond rules come from the City's IDM Supplement IDMS-2025-01; see Subdivision Checklists that Keep Your Projects Moving in 2026.
North Carolina
Stormwater control measures follow the NCDEQ Stormwater Design Manual.
Florida
FDEP construction permit coverage generally applies to sites disturbing one acre or more.
Frequently Asked Questions
When should due diligence happen?
After you identify a site and before you commit capital, ideally during the contract period.
Does JRH Engineering perform Phase I environmental site assessments?
No, environmental assessments are by others; JRH Engineering handles the civil engineering review.
What can make a site fail due diligence?
Floodplain mitigation, detention pond footprint, drainage deficiencies and unavailable utilities.
Can a listing's detention pond claim be wrong?
Yes, the Fuqua pad's detention pond claim did not meet current City of Houston criteria.
Why check utilities early?
A Lockhart distillery site was permittable, but natural gas could not be extended at a reasonable cost.
Does JRH Engineering obtain building permits?
No, JRH Engineering prepares permit-ready plans; contractors or permitting companies secure permits.
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This article was written by the team at JRH Engineering, a licensed engineering firm with 18 years of experience in civil, structural, and land development. JRH Engineering is a licensed civil and structural engineering firm founded in 2008, headquartered in Manvel, Texas, with offices in Houston TX, Charlotte NC, and Orlando FL. Certified WBE, WOSB, and HUB-eligible. Phone: (800) 227-9635 | sales@jrhengineering.net | jrhengineering.net. Texas PE license is F-10385. North Carolina PE license is P-3118. Florida license is 38516.
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