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PM Guide in Development Strategy PDF
PM Guide in Development Strategy PDF
Paper 0143V3-0
Introduction
Contents
1. Foreword
2. Introduction
1 Foreword
On reaching the first floor landing of the grand staircase in the RICS headquarters in
Great George Street, there have been times although I admit not many when,
instead of my steps tracing a path in the direction of the bar, I have turned sharp
right towards the double doors which announce entry to the library. Inside, two short
turns to the left have brought me to a short length of shelving which bears the legend
Project Management. I cannot remember how long ago it was that my eyes first ran
over the titles, but both then and subsequently I have been struck by the
overwhelming bias towards description of organisation systems and network
analyses mostly related to construction activities. Helpful as these works may be,
the project manager of a commercial development has far wider horizons to
encompass.
Since 1970 my career has been solely concerned with project management, and in
recent years, as director of a major development company, I have fortunately been
provided with the opportunity to translate experience into policy. This spawned the
idea of a Guide which would act as a reference work for our in-house project
management team. However, the reality lay dormant until the announcement by the
RICS in 1982 of a Project Management Diploma Course. The Guide was first
researched and created in response to the course requirement for a second year
project, and in 1985 I was pleased to be prompted by CASLE (Commonwealth
Association for Surveying and Land Economy) to revise and extend this work. The
information is necessarily based on features and practice within the UK development
industry, but I believe much of this to be of broad application. I trust the reader will
therefore find benefit even in those chapters which are closely tied to legal doctrine.
For the purpose of narrative style I have assumed that the project manager is
representing the developer, whether as an in-house employee or as an agent, and the
attitudes and observations flow accordingly. I also refer to the employing party,
whether it be corporate or an individual, as the client or developer; the reader should
treat these identities as synonymous.
The term Guide is deliberately chosen. There is no single definitive approach to
project management and consequently my intention has been to provide a
commentary on the major facets affecting commercial development. Nor should it be
regarded as exhaustive. The scope of project management is ever changing, whether
through market fashion or the influence of statute, and there is no shortage of
personal impressions that have been aired as to its content and style. The Guide
inevitably reflects my interpretation, but fundamentally it is a statement of factual
and practical matters encountered in everyday project management.
2 Introduction
In September 1989 the Royal Institution of Chartered Surveyors published the first
professionally authorised Project Management Agreement and Conditions of
Engagement. This was an ambition realised for the RICS s Project Management
(Diploma) Association, which from its inception in 1985 had seen the creation of a
standard form, comparable to those published by the RIBA and ACE for architects
and engineers, as an essential requirement of the property development industry.
Henceforth it would provide a basis of common understanding between clients and
project managers of the role and services to be performed.
However, such a document a contract has necessarily to be objective. It cannot
easily address the more subtle influences which affect the relationship of client and
project management. For example, by what yardstick is the project manager to be
judged? Does the project manager who directs the design and construction of low
quality speculative offices, which let immediately on completion, perform better
than one who gives care and attention to long term maintenance and service charge
costs for a building that does not attract a tenant for two years? Which is more
desirable: a shopping centre where a drive on programme saves two months and
considerable interest charges but has only a few tenants ready for trading, or one
which completes on time with virtually all tenants shop-fitted and ready to receive
the public? The difference in marketing impact is considerable.
These examples may be simplistic but they nonetheless serve to highlight the need to
determine the project managers role. I suggest this can be looked at as one of three
possibilities:
l
l
and allied to these considerations is the extent of the project managers brief. It may
embrace the entire development process or be limited to only part, such as design
and construction.
The understanding between client and project manager is therefore of vital
significance. This will be influenced in part by the clients own expertise, but it must
be anticipated that in some instances the project manager may have to prepare and
condition his client. He must understand the clients corporate and executive
hierarchy, his decision processes and reporting requirements. There has also to be an
appreciation of the clients role: how did he gain his position, what are his
expectations, and particularly what is his relationship to other principals and how did
this arise? The last point is fundamental to any contact the project manager may
have with third parties when representing the client.
Following from this, the project manager must distinguish the rights, responsibilities
and obligations created by contracts. Development projects attract a plethora of
parties, ground landlords, funding institutions, consultants, contractors and
subcontractors, and statutory authorities to name just the obvious. The project
manager is a pivotal character in fulfilling his clients obligations, covenant by
covenant. He must recognise where action under one contract may have
consequences for another (eg extension of time under the building agreement), and
also distinguish between similar obligations under differing contracts (eg certificate
of practical completion under a building contract, and certificate of practical
completion pursuant to a funding agreement).
The role of the project manager will inevitably involve him in discussion, review
and instruction of matters impinging on the respective consultants specialist
expertise. This is particularly apparent in the chapter on Design and Specification in
which I mention various aspects requiring the project managers attention, but which
clearly overlap the consultants functions. This cannot be avoided; the project
manager should simply take care not to relieve or transgress the consultants
responsibilities.
The project managers usual relationship to a building contract is that of an
estranged party. The employer (client/developer) and contractor will be signatories
and the consultants names will at the very least be recorded. All will commit to
obligations. However, not so the project manager. His role has yet to be formally
recognised and he is therefore in a nebulous position. In practice the project
managers role is understood, but it is important to appreciate the underlying
reservation placed on any instructions he may issue; or the manner in which he deals
with contract advice from the consultants for the benefit of the client, particularly in
respect to claims!
Lastly in this series of role-playing features, I would mention the project managers
duty generally to safeguard his clients interest. This can take many forms, but by
way of instance, he should monitor local press coverage and make regular
inspections beyond site boundaries to ensure no unreasonable overspill effect on
adjoining owners and the public at large. Well maintained hoardings, safety lighting
and courtesy notices present an image which reflects on the client and the entire
development team.
A development project runs through many phases, a number of which will overlap
according to circumstance, but for which there is nonetheless a reasonably
determined sequence. The chapters of this Guide are therefore arranged in the
approximate order of events. It may be that, for any given project, the project
manager will be appointed to control only certain activities, in which event some
interpolation will be needed. However, even in these instances I suspect a review of
other topics will enable the project manager to assist his client beyond his immediate
brief. The Guide does not contain a specific chapter dealing with the clients brief, as
the criteria to be established are substantially reflected under the various headings.
Finally, but I am sure not least in the mind of the consultant project manager, is the
matter of his remuneration. The Project Management Agreement and Conditions of
Engagement deliberately leave open the assessment of fees. Consequently the
project manager must conduct his own assessment and negotiation with the client. In
doing so I suggest full account is taken of my earlier remarks about the alternative
degrees of project management responsibility; if this entails achievement of targets
or some measure of project success, then the role contains a degree of
entrepreneurial risk it is not simply consultancy. In such situations the project
manager must consider whether this merits additional reward. Presumably the
contrary position must be that if the project manager does not achieve his target, he
is potentially liable!
I hope that the reader does not have the misfortune ever to become so distrained
from a client, and that in some measure this Guide will signpost the way to fruitful
and satisfactory service.
Appointments
Contents
3. The project management appointment
3.1 Structure
3.2 The project
3.3 The services
3.4 Obligations and standards
3.5 Reporting to and obtaining instructions from the client
4. Consultant appointments
4.1 Appointment terms general criteria
5. Architect
5.1 Appointment terms (Appendix A1)
5.2 Memorandum of Agreement
6. Quantity surveyor
6.1 Appointment terms (Appendix A2)
7. Structural engineer
7.1 Appointment terms (Appendix A3)
8. Mechanical and electrical services consultants
8.1 Appointment terms (Appendix A4)
8.2 Memorandum of Agreement
8.3 M & E subcontractor appointment
Title
Project
Manager
Institution
Agreement
Royal Institution of
Chartered Surveyors
NB: For non-native English speakers the words appointment and engagement
may be considered interchangeable in this section.
3.1 Structure
There are three primary components to an appointment contract:
1. The project specifics, eg the parties, scope of development, duration of
appointment, fee etc.
2. The services to be performed.
3. The obligations and standards by which the contract is to be implemented and
judged.
Whilst there is some inevitable intermingling of these in all contract drafting, I
recommend the project manager always to keep these distinctly in mind when
reviewing or drafting terms. It is a helpful discipline when assessing the balance,
relevance and risk of the contract. The RICS Agreement comprises two parts: the
Memorandum contains the project specifics, and the project management services by
reference to an appendix; the Conditions of Engagement describe the obligations and
standards (although some also appear in the Memorandum).
Make clear to your client the form in which you are contracting as an individual,
partnership, primary or subsidiary company? Is a guarantee for your performance on
offer (or perhaps only if requested)?
Equally, be certain of the client entity with whom you are contracting. A corporate
search never goes amiss, and does not have to be disclosed.
Scope of development
The project manager is often first engaged at a time before the scope is sufficiently
certain for accurate contract description. By the same token, it is too soon to confirm
absolutely your contract commitment and services. Temporarily, a provisional
agreement is better.
For the client as well as project manager, it would benefit the ultimate relationship if
the scope is wholly or substantially defined and confirmed in the agreement. A later
disagreement about what was intended, even though the misunderstanding may be
genuine, will prejudice trust.
Duration
Whilst the start of an appointment usually presents no difficulty, careful thought and
anticipation needs to be given to its completion. Project management services
frequently go beyond events associated with the building contract, eg final
certificate. Client and project manager should agree how the end is to be decided.
Is it to be a fixed date come what may, a particular event, or completion of the last
service (not necessarily an obvious point in time)?
Whatever the decision, the duration is important. First for contract certainty, second
for agreeing the fee payment schedule, and third for setting the starting point for
statutory post-contract liability. One consideration in relation to this last is a possible
distortion of dates between that applying under the project manager s appointment
and those derived from the consultants and contractors agreements.
Keep in mind too that the project duration may vary from the original expectation. A
mechanism for adjustment is usually prudent.
Fee
In the United Kingdom there is no Institutional guidance provided for the assessment
of a project management fee. Whilst a market opinion based on percentages has
developed for commercial work, this is unsophisticated. I have not heard of anyone
who could demonstrate facts and figures from a number of sources. Consequently
even if expressed as a percentage of cost, the root calculation of a fee is in the
estimate of the resources, time and effort which the project manager will devote. To
this must be allied the responsibility, authority (and liability?) which the project
manager is to take. I commented on this in the Introduction. Particularly in fee
bidding, it is so easy to be optimistic and assume all will go smoothly. Be prudent.
Productive relationships and jobs well done are usually only achieved through
considerable effort those that turn sour are even harder.
Fees in the UK are usually expressed as a percentage of the building cost. By
implication, this conveys the impression that project management is solely
concerned with design and construction. This is often far from the truth, as I hope
this Guide and the course in general will confirm. Perhaps the worth of your project
management service will be better understood if the fee is calculated and expressed
according to the services to be performed, eg as a measure of development cost.
In the UK, the most common relationship is that of agent, as indeed for the RICS
Agreement. It is also comparable to that of the consultants.
It is desirable that the project manager s authority and relationship to the consultants
be clarified in the appointment. The RICS Agreement deals with this in two respects.
First it states that the client will directly appoint the consultants but that the project
manager will be responsible for management of them and that they shall provide the
project manager with information required for the performance of his duties, without
charge to the project manager. Second, the RICS Agreement states that the client
will formally notify the consultants of the authority given to the project manager to
act on his behalf, and also identify any specific items upon which the clients written
consent is to be obtained.
Decisions
Too many controls will inhibit the development process; two few and there is a
breeding ground for misunderstandings and mistrust. The happy medium is fostered
as much by demonstrable responsibility by the project manager, eg frequent and
informal contact with the client to discuss current issues, as by specific controls or
periodic formal reports.
The client will participate to some degree in most of these. So far as it is practicable
to do so, describe in the appointment the extent of the project managers function.
4 Consultant appointments
The role of the traditional design and cost control consultants is supported by four
separate Conditions of Engagement, produced by three different professional
institutions.
Architects
Royal Institute of
British Architects
(RIBA)
Structural Engineers
Mechanical and
Electrical Services
Consultants
Quantity Surveyors
Association of
Consulting Engineers
(ACE)
Royal Institution of
Chartered Surveyors
Each of the Conditions is written in a style dissimilar to any other, even as between
Agreements 3 and 4A, and the only harmonisation, to quote Agreement 3, is an
attempt by the ACE in their recent editions to link the Services description of the
Engineering disciplines to the work stages described in RIBAs SFA. (The Table
provides a reconciliation of the Consultants services, using the Work Stages of SFA
as a base reference.)
Individually and collectively the Conditions have important shortcomings.
1. Because each of the Conditions is presented in different style, each requires a
fresh attitude when read, to understand and interpret the client/consultant
relationship and responsibilities.
2. The Conditions contain only limited reference to each other, and to the coordination of activities and working interface that must occur within the
consultant team.
3. There are features of typical development consultancy not mentioned.
4. A number of responsibilities are qualified or excluded.
5. The Conditions contain services both within and without the normal
appointment, for which additional fees may be charged.
Nevertheless, each of the Conditions is the recognised conventional basis for
appointing the respective consultants in the UK development industry. Consequently
both clients and project managers should appreciate the confidence factor accorded
by development partners, particularly funding institutions and statutory authorities,
to appointments made using the standard forms.
ARCHITECT
STRUCTURAL
ENGINEER
RICS Scale of
Charges
RIBA SFA 99
ACE Agreement 3
ACE Agreement 4 A
Fees
Scale 36
Fees
Fees
Fees
Full Duties
Pre-design
Work Stage
Fees
Abridged
Duties
Fees
Performance
Duties
Preliminary Services
A/
B
Inception
and
Feasibility
Pre-contract
Basic Services
Budget
estimating
Stage: 1
Time 1
Time 1
Time
Stage: 2
Time 2
Time 2
Time
7%
10%
15%
Time
Design
Outline
proposals
Scheme
design
10%
Outline
proposals
15%
(extensive)
Preparation of
tender
documents
Examination of
tenders
received
Production
information
and Bills of
Quantities
Tender
Action
25%
Scheme design
35%
17%
25%
60%
40%
40%
66%
Production
information
85%
(restricted
service)
(very limited
service)
80%
65%
70%
70%
(restricted
service)
(very limited
service)
(very limited
service)
(very limited
service)
8
(restricted
service)
Construction
50%
Project
Planning
Costing variations
Operations on
site
Preparing interim
valuation and final
account
Completion
Post -contract
Measurement
Construction stage
98%
100%
100%
100%
100%
I should stress here that the Conditions set out in the drafts are my own choice; the
reader may consider some should be omitted and others added. There is no single
option. For what it is worth, however, I can add that the style shown in Appendix A
has been used by me without exception since 1980. Whilst there have been
amendments to the standard draft since that time, and on every occasion it has been
purposely refined to suit the particular development, the essence has remained the
same. It has been remarkably successful in bringing certainty to the client/consultant
relationship.
Addressing appointment terms early in the life of a development does, in my
experience, promote a better and realistic understanding between the client/project
manager and consultants. Thus I strongly recommend the project manager to issue a
draft of the appointment as soon as possible, even though it may not be appropriate
to define or sign against final terms until some time later, when the character of the
development has unfolded sufficiently for all parties to settle with reasonable
confidence. Prior to signature the draft appointment provides a substantial indicator
of the client/project manager and consultant relationship.
Other than the lead design and cost consultants, the project manager must consider
that further consultants or advisors should be recruited to the team. Some may have a
design bias, such as landscape architects, acoustic consultants or traffic engineers, in
which event the project manager must determine between the direct appointment by
the client or a sub-appointment by main consultants; also whether the main
consultant embraces full design responsibility or only direction and administration of
any sub-appointment, and whether the main consultants fee is deemed to include
payment to the sub-appointee or is separately defined.
Invariably, a development team will include an array of professional advisors whose
roles are essential to the development process and who may have a strong influence
on the direction and performance of the design and cost consultants. Surveyors, real
estate agents and lawyers are the obvious examples, but the list may easily extend to
include others such as accountants and market research analysts. Whether imposed
by the client or recruited by the project manager, the latter must be certain as to his
responsibility for instructing, directing or ensuring overall co-ordination. If he is to
settle terms of appointment, the project manager can often obtain guidance from
relevant institutional recommendations. The service required of these professionals
is usually more easily defined or described and thus a letter of appointment will
often suffice without need for recourse to a specially drafted agreement.
3. Consultant
Some professional practices operate under more than one style. Check the
practice name (and address) acting as consultant and its corporate credentials!
4. Service
(1) Before drafting the specific services requirement for a given development, the
project manager should assess the role of each consultant and their interrelationship. The architect has traditionally been regarded as the leader of the
consultant team and part four of the RIBAs Standard Form of Agreement
confirms this principle by stating The Architect will have the authority to coordinate and integrate into the overall design the services provided by any
consultant, however employed. A decision on the extent of services to be
performed by the Mechanical and Electrical Services Consultant is
particularly important because of the three alternatives offered in ACE
Agreement 4A. (See Mechanical and Electrical Services Consultant, later in
this paper.) The design of the M & E systems is often substantially
undertaken by specialist subcontractors, and this can influence overall design
co-ordination and supervision responsibilities. The approach for each
development should be clarified when settling service terms.
A further refinement, which the project manager might consider appropriate
to the service description, is to specify the number and/or names of each
consultants personnel assigned to the development, and their role. My own
view is that this can be a double-edged sword as it may demand premature
judgement of personalities and can inhibit flexibility. Nonetheless, I do accept
that it is a means of determining adequate resourcing by consultants.
In commercial development it is essential the consultants function as part of a
team capable of servicing the sale and/or letting activities. Although generally
understood as a principle by consultants, the need for specifically produced
drawings and specifications suited to marketing campaigns and tenancy
agreements can be regarded by them as exceptional. There is no reference at
all in the Institutions standard forms! Hence it is appropriate to include the
commitment in the appointment, even though the precise requirements are
unlikely to be known at the time of signing the appointment agreements. It is
also therefore included within the fee.
Only the RICS Professional Charges refers to claims, and then only in the
context of additional charges by quantity surveyors for investigating the
validity of contractors claims. Bearing in mind that the consultants are
inextricably linked to claims discussion (argument!) and assessment indeed,
lack of design information is probably the most frequent contractors
complaint there seems good reason to make plain that the consultants
service includes advice to the client and project manager, and representation
of the clients interest.
(2) Development associates (funding institution, local authority, tenants)
frequently engage professional consultants to give independent advice on the
quality of design and administration of the building contract, including
sanction of architects certificates submitted to a fund for reimbursement.
Whilst it is important that there should be no interference in the
responsibilities of the clients consultants in relation to the building contract,
it is also necessary that the consultants recognise and agree the liaison
required with those representing Development Associates.
5. Copyright
The wording in the draft appointment follows the style included in the BPF
Collateral Warranty. Copyright is retained by the consultant but licence is
given to the client for all reasonable needs.
6. Fee
The fees set down in the respective Conditions of Engagement are not
mandatory. Indeed the RIBA now only provides information on fee ranges
based on market research of actual fees from amongst its members. The
earlier table shows the cumulative fee due to each consultant according to the
Work Stage completed, as recommended by the respective Conditions of
Engagement.
It is common to all four consulting disciplines to calculate fees as a
percentage of the final account value. For the structural and services
engineers, however, Agreements 3 and 4A set down specific means of
calculating their fee against the value of the works with which they are
particularly associated. The calculations are complex, particularly those for
structural engineers, and seem to offer no definite advantage over the gross
final account method. The latter is certainly easier for administration and
possibly removes any inclination on the part of the engineers to design
expensively, as they have limited influence on the total budget. The overall
fee approach is accepted by most consulting engineers.
Fixed or lump sum fees have a definite attraction for the client and project
manager, because of the certainty they provide. I have also found consultants
willing to agree once they are reassured how this is to be achieved. For them
too it can be a safeguard; it is not unknown for final contract sums to be lower
than the pre-contract forecast or accepted tender. An approach I have found to
work well is to agree a percentage which, once a contract sum is defined, is
applied to that and converted into a fixed fee sum. This has the benefit that
the fee reflects the value of the work described in the building contract, which
is reassuring to the consultant, but removes any suspicion that there is
financial advantage to the consultant in designing or instructing changes
through the contract. When requested, I have agreed a proviso that the
consultant shall receive an additional fee if the client instructs a major change.
This is also discouragement to the client. As client changes can rarely be
anticipated and may be omission or adaptation as much as addition I do
not agree to any more specific wording then this statement of intent. In turn,
however, I regard it as the duty of the project manager to promote to the client
the case for additional fees if instruction falls within the spirit of major
change.
The fee should be recorded as being in payment of all services described in 4
above. If any exceptions are made, as for example in approving tenants
shopfitting proposals, special presentations, or production of a maintenance
manual, these should be specifically noted and the basis of assessment or
agreed fee for these be recorded.
Expenses are usually treated on one of the following bases:
a. as within the aggregate fee, or
b. as a separate and additional percentage of the contract value, or
c. as based on actual costs incurred, evidenced by vouchers, etc.
For reasons of certainty and simplicity of administration, the project
managers preference might be in the same order.
7. Site personnel
The need for site personnel will vary according to the complexity of design
and construction, and also often according to the preference of the individual
consultant. Costs normally form an extra to fees and are customarily based on
wage and national insurance expenses plus an addition for administration
overheads. It is advisable therefore to establish early with each consultant the
likely need for site personnel, because cost allowances must be made in
development appraisals.
When budgeting for expenditure the project manager should take account of
possible wage or salary increases during the time that site personnel are
employed on a project.
8. Terms of payment
The project manager must distinguish between:
a. the pre-commitment period, ie prior to an unequivocal client
instruction to proceed and complete the project, and
b. the post-commitment period, when the full fee terms (Clauses 6 and 7)
will apply.
During the pre-commitment stage the consultants reward may be based on
either a lump sum for work up to any given stage of design or development
progress or, alternatively, at an agreed monthly rate, subject to an aggregate
limit. In either event, pre-commitment should be defined as including all
expenses and site personnel. All payments made will be on account of the full
fee in the event of the development proceeding. Beware of payments based on
time charges without a ceiling limit; they can result in unpleasant surprises!
Provision should always be made for a proportion of the consultants fee, say
5%, to be held until issue of the architects final certificate, ie completion of
defects.
12. Signature
The draft appointments in Appendix A are presented in the format appropriate
for them to be signed as a Deed (in England and Wales), ie with twelve years
continuing liability following completion of duties. The project manager
should consider whether this is appropriate to the type of development and
duties to be performed. The alternative is to sign under hand, which conveys
six years liability.
The following sections deal with matters related specifically to the respective
appointments of the four primary consultants. The clause numbers again
relate to those contained in the draft appointments set out in Appendix A.
5 Architect
5.1 Appointment terms (Appendix A1)
4 Service
Schedule Two of the SFA lists the services to be provided by the Architect. It begins
with four headings Design Skills, Consulting Services, Building/Sites, and All
Commissions under which are listed services generally applicable to any
appointment. It is intended, however, that the client (project manager) and architect
should indicate those included or deleted, and write in any additions.
Then in similar style, the following 11 Work Stages. In summary these are:
l
6 Fee
The SFA guide contains information supplied by its members. This is reproduced on
the following pages. As will be seen there are two tables, one for New Works and
the other for Works to Existing Buildings, and each contains five classifications of
building type, details of which are given in Table 3.
Clause 6 should contain a statement of the percentage, lump sum or other fee
payable and that this is in respect of the entire service. Any specific exceptions
should be noted together with the fee basis.
Class 1
%
Class 2
%
Class 3
%
Class 4
%
Class 5
%
50 000 to 75 000
7.207.45
7.758.60
6.857.20
7.157.75
7.458.10
6.256.85
6.007.15
6.707.45
7.107.60
7.758.00
5.906.25
5.606.00
6.256.70
6.757.10
7.507.75
5.755.90
5.455.60
6.006.25
6.506.75
7.357.50
5.655.75
5.355.45
5.906.00
6.356.50
7.207.35
1 m to 2.5 million
5.505.65
5.055.35
5.705.90
5.956.35
6.857.20
2.5 m to 5 million
5.505.70
5.705.95
6.306.85
5 m to 7.5 million
5.355.50
5.655.70
6.206.30
7.5 m to 10 million
5.255.35
5.605.65
5.906.20
10 m to 50 million
5.005.25
5.255.60
5.305.90
Class 1
%
Class 2
%
Class 3
%
Class 4
%
Class 5
%
50 000 to 75 000
12.3014.00
11.4012.40
11.7512.30
10.8011.40
10.6511.15
10.2011.75
9.6010.80
9.6010.65
10.6011.40
11.4011.90
9.7010.20
9.359.60
8.959.60
9.8010.60
11.1011.40
9.509.70
9.309.35
8.608.95
9.409.80
10.7011.10
9.309.50
9.209.30
8.408.60
9.109.40
10.3010.70
1 m to 2.5 million
7.708.40
8.709.10
9.9010.30
2.5 m to 5 million
7.257.70
8.408.70
9.609.90
5 m to 7.5 million
7.107.25
8.208.40
9.309.60
7.5 m to 10 million
6.907.10
8.108.20
8.909.30
10 m to 50 million
6.206.90
7.408.10
7.408.90
Survey of Fees
TABLE 3 Classification of Building Types
Type
Industrial
Class 1
l
Storage
sheds
Class 2
l
Class 3
Speculative
factories and
warehouses
Assembly
and machine
workshops
Transport
garages
Class 4
Purpose-built
factories and
warehouses
Agricultural
Barns and
sheds
Stables
Animal
breeding units
Commercial
Speculative
shops
Surface car
parks
Multi-storey
and
underground
car parks
l
l
Supermarkets
Banks
Purpose-built
shops
Office
developments
Retail
warehouses
Garages/
showrooms
l
l
Community
centres
Branch
libraries
Ambulance
and fire
stations
Bus stations
Railway
stations
Airports
Police stations
Prisons
Postal
buildings
Broadcasting
l
l
Estate housing
and flats
Barracks
Sheltered
housing
Housing for
single people
Student
housing
l
l
l
l
Primary/
nursery/first
schools
l
l
l
l
Community
Community
halls
l
l
l
l
l
l
l
l
l
l
Residential
Dormitory
hostels
l
l
l
l
l
Education
Recreation
l
l
l
l
l
l
l
l
Medical/
Social
services
Class 5
Sports halls
Squash courts
Clinics
l
l
l
l
Department stores
Shopping centres
Food processing units
Breweries
Telecommunications
and computer
buildings
Restaurants
Public houses
Civic centres
Churches and
crematoria
Specialist libraries
Museums and art
galleries
Magistrates/ County
Courts
l
l
Parsonages/ manses
Apartment blocks
Hotels
Housing for the
handicapped
Housing for the frail
elderly
Other schools
including middle and
secondary
University complexes
University
laboratories
Swimming pools
Leisure complexes
Leisure pools
Specialised
complexes
Health Centres
General hospitals
Nursing homes
Surgeries
l
l
l
l
l
High risk
research and
production
buildings
Research and
development
labs
Radio, TV
and recording
studios
Theatres
Opera houses
Concert halls
Cinemas
Crown Courts
Houses and
flats for
individual
clients
Teaching
hospitals
Hospital
laboratories
Dental
surgeries
6 Quantity surveyor
6.1 Appointment terms (Appendix A2)
4 Service
(1) The RICS publishes two fee scales, Nos 36 and 37. Scale 36 is an inclusive
scale; scale 37 gives an itemised scale of professional charges, breaking the
quantity surveyor service into a number of components, and is only likely to have
relevance in the event of a contract proceeding on the basis of an approximate
Bill of Quantities or Schedules of Rates.
When defining the service it is important to consider whether a Bill of Quantities
is required for the air-conditioning, heating, ventilating and electrical services as,
if undertaken by the quantity surveyor, this generates an additional fee according
to both scales. The ACE Conditions provide that the services consultant can
produce a Bill of Quantities (for an additional fee based on the quantity
surveyors scale) but it is preferable that if a Bill is required this be undertaken
by the quantity surveyor, so as to maintain uniformity of cost control. It also
provides an independent check (by the quantity surveyor) on the adequacy of
information shown by the services engineer. For many commercial projects an
M & E Bill is not necessary and frequently the quantity surveyor provides a
reasonable measure of cost control within the fee.
(8) Capital allowance. In the UK it has been a traditional part of the Governments
fiscal policy to provide tax allowances in the form of an annual writing off of a
proportion of the original construction costs. This does not apply to all forms of
building or every part of construction; but where it does apply can provide a
valuable tax benefit. Plant and machinery is the most frequently cited instance,
but the project manager should also review with the clients tax adviser to secure
the best current advice, and then direct the quantity surveyor.
Tax allowances can usually only be claimed by the party providing the
development finance. Whilst the client will therefore not always gain direct
benefit, it is necessary to retain the service in case this is required by the fund.
(9) Consulting engineers fees. As one means of determining engineering
consultants fees, the ACE Conditions of Engagement require the percentage
scale to be calculated against the respective value of the structural, and
mechanical and electrical services, content of contract. It is usual for the client
and engineer(s) to accept the quantity surveyors assessment.
6 Fee
Category B
Value of work
Fee
Category C
Value of work
Fee
The additional scale fees, when bills are required for air conditioning, etc are:
Value of service
Additional fee
Up to 120 000
120 000 240 000
240 000 480 000
480 000 750 000
750 000 1 000 000
1 000 000 4 000 000
Over 4 000 000
5.0%
6 000 + 4.7% on balance over 120 000
11 640 + 4.0% on balance over 240 000
21 240 + 3.6% on balance over 480 000
30 960 + 3.0% on balance over 750 000
38 460 + 2.7% on balance over 1 000 000
119 460 + 2.4% on balance over 4 000 000
The inclusive scale of professional charges provides that the printing of a reasonable
number of Bills of Quantity and other documents, together with normal travelling
and other expenses, are included within the percentage fee.
However, the principle of using standard fee scales is no longer considered
necessary. Non-standard rates or agreed lump sums are now often used in the
UK.
7 Structural engineer
7.1 Appointment terms (Appendix A3)
The Association of Consulting Engineers is the presiding body which publishes
Terms and Conditions of Engagement for Structural Engineering Services . Those
for the structural engineer are contained in a booklet titled ACE Conditions of
Engagement, Agreement 3 for Structural Engineering work where an Architect is
appointed by the Client Harmonised with Architects Appointment.
4 Service
(1) Following the lead of the RIBA, Agreement 3 describes the normal service
under a sequence of work stages approximating to those set out in Architects
Appointment. (NB: Although Architects Appointment was superseded by
SFA in June 1992, the Work Stages remain the same in principle.)
Whilst the nature of the service under each heading is described, there is only
minimal reference to the features of the development which the structural
engineer is to design or supervise. Consequently the project manager should
define any particular matters for which the engineer is responsible, as indicated
in the draft (Appendix A3).
Clause 7 of Agreement 3 describes a number of additional services (not included
in the normal service) for which payment is on a time basis. Seldom will any of
the additional services be required, but for a large complex development this
section should be reviewed. If any additional service is needed, it is preferable
that payment be absorbed in the principal fee calculation rather than left for
assessment on a time basis as provided in Agreement 3.
Adjacent properties. In establishing the structural engineers brief, it is
particularly important to consider the need for involvement with properties that
are to be retained either within or outside the development site. If the stability or
structural condition of such properties may be affected, the structural engineer
can be instructed to monitor their condition and represent and/or negotiate with
any third parties concerned.
Ground investigation. A ground investigation is invariably required for
development work, and will normally be undertaken by a specialist company to
the direction of the structural engineer.
(6) Record drawings. As-built drawings are listed by Agreement 3 under Clause 7.
Additional Services (time charge!). Engineers drawings are vital to the long
term ownership of a building, and possible future alterations or refurbishment.
6 Fee
According to Agreement 3, Project may be taken to mean the total contract sum,
whilst Works are said to mean that part of the project for which the client has
engaged the engineer to provide professional services!
Agreement 3 goes on to describe a complex formula and graph for determining fees
based on the cost of the Works ; too complex to attempt a precis here. I earnestly
commend every project manager to alternatives (a) or (c), for the reasons mentioned
earlier under General Criteria, which seem equally to be appreciated by structural
engineers.
The ACE Conditions provide for expenses to be reimbursed at cost. A fixed lump
sum limit or adjustment in the fee percentage provides greater budgetary certainty.
7 Resident Engineer
Agreement 3 stipulates that the client shall reimburse all salary and wage payments
paid by the consultants to site staff, plus a percentage to be agreed for head office
overheads and administration. Reasonable in principle, but beware the salary
increase(s) part way through the job which blows the budget allowance! Better to
agree a fixed gross monthly sum, with an aggregate upper limit.
Memorandum of Agreement. Agreement 3 contains a Memorandum of Agreement
to be signed by the client and consultant recording the engagement and terms of
payment. This should be superfluous if the form set out in Appendix A3 is adopted.
(1) Mechanical and Electrical Services Consultants are commonly appointed under
the Association of Consultant Engineers Conditions of Engagement Agreement
4A. This provides three alternative bases of appointment, known as Full duties,
Abridged duties and Performance duties. (See also M & E Subcontractor
Appointment, below). This is a vital early decision. It affects the extent to which
the design of the services is on a comparable level with architecture and
structure; it also significantly influences the time when the services subcontractor
must be appointed. See Sequence below.
Agreement 4A specifies in detail the work programme for each form of duty. The
respective programmes are divided into eight stages, which are intended to match
the RIBA work stages.
Unless stated otherwise, the Full and Abridged duties provide for the consultant
to produce a Bill of Quantities (for which an additional fee based on the quantity
surveyor scale is payable). A Bill of Quantities for the M & E services is
infrequently required, but, when it is, it is usually preferable for it to be prepared
by the quantity surveyor. This acts as a check on the quality of information
produced by the consultant and assures uniformity of cost control. By virtue of
other provisions in Agreement 4A, the services consultant still retains
responsibilities for providing budgetary advice and account checking.
Even when a consultant is appointed to Full duties, the subcontractor will have to
produce installation drawings, which Agreement 4A describes as drawings
based on the tender drawings and/or co-ordination drawings (by the consultant)
showing details of the subcontractors proposals for the execution of the works.
The drawings will be in such detail as to enable the works to be installed.
Separate to the detailed list of duties given for the three principal services,
Agreement 4A schedules a number of optional Additional duties. It therefore
requires a laborious cross check to establish what is automatically included in the
appointment, and which of these further duties may be required for a particular
project. Most consultants recognise this problem and are willing to take a broad
view, hence the wording in the draft Appointment. Although Agreement 4A
requires the M & E consultant to carry out commissioning and testing
procedures, to inspect the works on completion and record any defects, there is
no mention of certification to support the architects Certificate of Practical
Completion. Given the significance of the consultants role, it is desirable that
there should be a clear contractual record of acceptance, and hence the provision
in paragraph 4.1.3.
Agreement 4A contains an Appendix describing the engineering services and
equipment included in the consultants appointment; a copy is reproduced in the
following pages.
(6) Record drawings . Both Full and Abridged duties provide in the scale fee for the
consultant to receive and examine, on completion of the work, copies of record
drawings, operating instructions and maintenance schedules prepared by the subcontractor and deliver same to the client. However, if responsibility for
producing this information is placed on the consultant then, unless otherwise
stated, an additional time charge fee is payable.
6 Fee
Agreement 4A contains three graphs for calculating the fee according to each type of
duty, but interpretation requires (in the UK) knowledge of the output price index
produced quarterly by the Department of the Environment. The cost of works,
against which the scale fee is then applied, is the value of the specialist subcontract
together with some additions for attendant builders work, and to this aggregate
figure there is a further 15% to cover profit and preliminaries. When assessing fees
on the scale basis, be sure not to overlook the value of these additions.
The fee arrangements are further complicated by a series of notes at the side of the
work programme for each type of duty, indicating that many of the items in the work
stages are subject to other forms of payment time charge, supplementary scale, and
quantity surveyor scale. In particular, stages 1 and 2 (pre-design work) are entirely
on a time charge unless otherwise stated. It is therefore preferable clearly to record
that the consultants fee will be based solely on the scale or otherwise agreed fee,
and will be in respect of all the responsibilities listed in the work plan (except
perhaps Bill of Quantities) unless specific exceptions are made and stated.
Fortunately, services consultants, like other disciplines, are happy to work on either
a lump sum fee or a percentage fee of the total building contract. As a general
indication, a fee for Full duties assessed on the total contract value is likely to rest
between 2% and 2.7% depending upon the size, complexity and value of the M & E
services and building contract.
Expenses. According to Agreement 4A, the consultant will be entitled to
reimbursement of expenses in addition to the scale fee. A percentage fee inclusive of
expenses, or a lump sum, are more positive alternatives.
The extent of tender competition required and the certainty of design and
price that is to be embodied.
Title
ACE
AGREEMENT 4A
APPENDIX APPENDIX APPENDIX
1
2
3
Work stage
Inception &
Feasibility
B
C
D
Strategic Briefing
Detailed Proposals
2
3
4
Final Proposals
Production
Information
Tender
Documentation
H
J
Tender Action
Construction to
Practical Completion
After Practical
Completion
PRE-DESIGN
Outline Proposals
DESIGN
Mobilisation
CONSTRUCTION
See listed duties
INTENDED HARMONISATION
Agreements
Contents
9. Development partnerships contracts
10. Development/building agreements
10.1 Approved plans, elevations and specifications
10.2 Definitions
10.3 Demolition/site clearance/services diversions
10.4 New main services
10.5 Consultants
10.6 Programme
10.7 Delays during building contract
10.8 Multi-phase development
10.9 Insurance
10.10 Building contract
10.11 Ground landlords right to enter on site during building construction
10.12 Progress report to ground landlord
10.13 Transfer of development obligations to ground landlord in event of
developer s default
10.14 Archaeological finds
10.15 Site hoardings
10.16 Developers boards
10.17 Works for third parties
10.18 Leasing to tenants
10.19 Tenants shopfitting
10.20 Displaced traders
10.21 Local authority obligations
10.22 Site access
10.23 Completion certificate
10.24 Development outlay
10.25 Arbitration clause
10.26 Example of development agreement Process analysis
11. Joint venture agreements
11.1 Definitions
11.2 The company
12. Finance agreements
12.1 Approved drawings and specifications
12.2 Working drawings, services installation drawings, etc
12.3 Consultants appointments
12.4 Building contract
12.5 Deleterious building materials
12.6 Contract administration
12.7 Development outlay/developers calldown
12.8 Completion certificate
12.9 Tenants
12.10 Record drawings and manuals
12.11 Finance provisions
12.12 Reflection
10 Development/building agreements
Probably the most familiar application of development agreements has been in the
formation of partnerships between local authorities and developers for town centre
redevelopments. The local authority has typically been responsible for site assembly
and the developer for design, construction and marketing, including the provision of
finance. However, the principles underlying the need for, and terms of, a
development or building agreement, are equally applicable to project partnerships
between private sector organisations where there is no public authority interest
involved. Usually the legal estate or interest of the developer will only be fully
realised on completion of his development responsibilities, the common arrangement
being that the agreed draft form of lease between the superior partner (landlord) and
developer, or other statement of developers reward, is set out in the development
agreement. Consequently, one of the project managers ultimate objectives on behalf
of his developer client is to ensure the grant of a lease or payment of the reward is
promptly and effectively achieved.
Development agreements contain numerous clauses which by convention, created
through experience and time, are found in virtually all lawyer drafts. There is not,
however, a standard form of agreement. Each will be prepared specifically for the
development contemplated, usually by the lawyers representing the owner of the
major legal interest in the site, and the drafting will therefore display a certain degree
of originality even in the standard clauses. I would advise any project manager, no
matter how extensive his experience, to read a draft agreement from cover to cover,
from The Recitals to here Witnesseth. Occasionally the project manager may
conclude that the drafting is fastidious or excessively weighted against his client, but
at least he will gain a feeling of proportion between the respective parties rights and
obligations. With this in mind, the project manager can then turn to specific study.
It is as vital to ensure that the responsibilities of the developer client are clearly
stated as it is to ensure that they are not unreasonably onerous. Also, the project
manager has the task of implementing and carrying through the developers
obligations. It serves no purpose to the project manager, his team or his client (nor
indeed the project partner) if, for example, the project manager s time is absorbed by
a requirement for providing too frequent written reports, or the project partner can
interfere in minor design changes.
By the same token, the project partners obligations must be equally certain. These
are likely to be found in the non-conventional clauses as they deal mainly with the
particular circumstances of the site and the partners contribution to the
development. Thus the project manager must consider carefully whether the clauses
expressing these responsibilities are sufficient and specific. It is no comfort during
the building contract to find that the site owner cannot hand over possession of part
of the site at a time promised but not recorded in the development agreement. The
contractor will have little sympathy for the client, and the project manager will have
none from either.
The developer client takes on obligations and responsibilities consistent with his role
and expertise. The project manager must ensure that he has the contractual rights and
opportunities to meet them. I cannot recommend too strongly that the project
manager participates in the drafting and negotiation process. In my experience,
solicitors welcome information and guidance which help the clauses of the
agreement to be properly cast, particularly in relation to the practical and physical
aspects of carrying out the development.
The following refer to clauses commonly found in development or building
agreements in the UK, which will directly affect project administration on the
clients behalf.
10.2 Definitions
Terms such as the plan, development area , the site, the property, the
premises, and others similar, are often used to define different elements of the
project. Ensure that there is a clear definition of each phrase (usually provided in the
preambles to the development agreement); and that subsequent references in the
body of the development agreement are consistent with their respective
interpretations. Such terms may also relate to drawings appended to the agreement.
Check that these are correct and also any delineating colouring they contain.
10.5 Consultants
Although not essential, the practice of naming the respective developers
consultants, and any similar representatives acting for the ground landlord, is to be
encouraged because of the awareness this brings to both parties activities.
It is to be expected that the ground landlord will require the developer to obtain a
warranty from the developer s consultants and/or contractor (and subcontractors)
confirming that they owe a duty of skill and care to the ground landlord. The project
manager should ensure the principle is promptly cleared with the developer s team,
notwithstanding any provision in the consultants terms of appointment (Appendix
A, Clause 4.2).
The British Property Federation publishes standard forms of warranty, which were
drafted in conjunction with the RIBA, RICS (for quantity surveyors), ACE and
CIOB. The warranties are expressed in the accompanying guidance notes to be used
where consultants and contractors are to provide commitments to financiers,
purchasers or tenants. However, I believe the style to be equally appropriate to the
requirements of a ground landlord, and I therefore suggest that the project manager
consider recommending that this be the form adopted. I should add that the RICS has
recommended the BPF warranty as suitable also for project managers who are
requested to provide this commitment. This should be with the same amendments as
are noted in the standard form as appropriate for quantity surveyors.
While the development agreement is still in draft form, the project manager should
ensure that he informs the consultants (and the contractor where already selected) of
those terms which directly affect them or their conduct of the project. This should be
in sufficient time to permit advice and/or comments to be absorbed into the legal
negotiations. On completion of the agreement, copies of the final relevant clauses
should be issued to the development team. It is, however, important for the project
manager to ensure that confidential information, for example financial terms, is
excluded from circulation.
10.6 Programme
Date of entry
The date of entry into the site is often specified in the agreement, and is frequently
related to factors such as satisfaction of conditions precedent, exchange of approved
drawings, availability of vacant possession, etc. The project manager should
consider the practicality of the date of entry as defined.
More than once I have known the initial drafting to express the date of entry as so
many weeks after signing of the development agreement or agreement of the
approved drawings. The timescale has appeared to be arbitrarily decided with no
consideration given for the programme period needed to complete detail design,
prepare Bills of Quantity and obtain tenders.
Yet frequently the developer and project manager will have held the consultants on a
tight fee rein to restrict speculative expenditure with consequent limitation on
amount of design work done so far. Months rather than weeks are required to
progress through the pre-contract programme. Often the development clock starts
running from the date of entry, so it is vital to have the appropriate pre-entry
timescale stated in the agreement.
Vacant possession
If vacant possession of the whole site is not available on the date of entry, ensure the
dates for subsequent areas are specified and advised to the consultants and contractor
for consideration during pre-contract programming, and stated in the building
contract terms.
Building period
The period permitted for construction is usually stated. Given that the agreement is
probably drafted many weeks before skilled (contractors?) analysis of the
programme is possible, this can at best be an estimate only. I have been surprised
how rarely this has been appreciated by the lawyers and other professionals in the
team. The project manager must persuade them, and in the cause of securing a
commonsense document, include an element of contingency.
Phasing diagrams
For each significant stage of the development programme there should be a plan
showing the respective site ownerships, extent of contractors works area, route for
contractors access, public rights of way, routes of services.
Timetable
A statement, perhaps in the form of a bar chart, should be included showing the
periods of time allocated to the respective building contracts and any consequential
sequence or other interrelationship that is to be observed. Where the timing of one
development is dependent upon another, the development agreement should provide
for the timetable to be extended, and hence the developer s obligations protected, in
the event of a preceding development being delayed. Such consequences must also
be reflected into dates for calculation and/or commitments for payment of ground
rent.
10.9 Insurance
Typically the developer will be required to insure for reinstatement and three years
loss of ground rent, and to indemnify the ground landlord against third party
liability. The draft clauses should be referred to the clients insurance broker for
comment/approval as soon as the draft agreement is received.
It is usual for the development agreement to define the form of building contract to
be used by the developer (eg JCT 1980 Local Authority Edition, with Quantities).
Approval to conditions
Occasionally the ground landlord requires that his approval must be given to the
conditions of the building contract. This should be resisted if possible, on the
premise that it is the developer and not the ground landlord who is party to the
building contract and it is he therefore who is responsible for the employers
obligations. However, this argument may not suffice if the ground landlord has the
right to take over the building contract in the event of the developers default, or his
reward is tied to control of development costs, in which case the ground landlords
right of approval should be qualified by not to be unreasonably withheld.
Approval to tender
If the ground landlord insists on the right to review the contract tender, this should
be by liaison with the developer s quantity surveyor and only occur following the
latters recommendation to the developer that he is satisfied with the terms and price
on which it is proposed to let the building contract, ie following negotiations and/or
tender vetting with the proposed contractor.
The agreement should state that the ground landlords tender review must have
regard to the full terms and conditions of the building contract and any notice of
objection against the tender which the developer proposes to accept must specify the
reasons.
Contract administration
Neither the ground landlord nor his professional representatives should have
sanction over the developers consultants duties to administer the contract, most
particularly in connection with the preparation of valuations and issue of certificates.
It is reasonable to allow the ground landlord access to the developers quantity
surveyor to inspect the basis of assessment of valuations, but if the ground landlord
thereafter wishes formally to register concern, this should be directed to the
developer (project manager) and the matter negotiated accordingly.
The drawings and specification for such works must be identified in the
development agreement. The document should state that the developer shall
not undertake any alterations or variations unless the ground landlord or third
party has formally approved an estimate of the cost. The project manager
should ensure that the developer s estimate is based on discussions with both
contractor and consultants and include allowance for any consequences which
the change may have on the developer s own building contract obligations
and costs.
The basis on which the developer may claim reimbursement should be his
quantity surveyors valuation and architects certificate. The project manager
should instruct the consultants to identify separately the value of third party
works. The developers service of the appropriate certificate to the third party
plus any addition for on costs should constitute notice for reimbursement.
A time limit of, say, 14 days should be given within which reimbursement has
to be received or else interest at a specified rate, say 2% over commercial
bank lending rate, will accrue. It is important to appreciate that as such works
are included in the developers building contract, they are included within the
aggregate of usual monthly building certificates. Consequently, the project
manager must ensure there are effective arrangements for notifying third
parties of impending reimbursements (eg forwarding a copy of the quantity
surveyors valuation, which usually precedes the architects certificate by a
few days) so that the developer does not incur a negative cash flow by
temporarily financing the third party works. The project manager must notify
the consultants of the arrangements required and agree the timing principles
with the developer and third party personnel.
Prior to formal offers being made, it is advisable for the project manager to ensure
that the ground landlord is notified of the proposed location of the units to be offered
to the respective traders, and the rents to be specified. The ground landlord should
also approve the lease to be offered.
Each offer should include a fully completed lease, plans, specifications and rent,
such that the displaced trade has only to sign the agreement for lease and return it
within the specified period (say two months) in order to secure his position. This
procedure enables the developer to insert certainty into his marketing campaign and
ensures that the traders cannot unduly procrastinate or negotiate.
Building costs
Consultants fees
Letting fees
Legal fees
Funding fees
Promotion
Site survey and soil investigation
Public inquiry expenses
Acquisition costs
Demolitions
Service diversions
Insurances
Non-recoverable VAT
Project management fees
Landscaping
Interest on the rising daily total of all the above at the agreed rate.
Shortfall between interest payable and rents received prior to the
capitalisation date.
It follows from this that rents or licence fees (eg hoardings) received prior to the
capitalisation date are usually treated as a deduction from the aggregate total of
development outlay.
DEVELOPMENT AGREEMENT
FOR
A HOTEL REDEVELOPMENT
Developer:
Banks:
Banks Representatives:
Employers Agent:
.......... have guaranteed to .................... the observance and
performance by the Owner of the obligations contained in the
Development Agreement including the payment of the Contract
Price ............... Owner retains a retention of 1% until 7 days
after defects made good (end of defects period). Also see MDev
17.3
Developer to procure that each member of Professional Team
enters into a duty of care warranty (if required) with Mees P
(MDev 2.4)
Freehold interest transferred to Owner for ................ pursuant to
an Agreement .................. MDev 18
B Obligations
Developer: occupies the Premises as licensee from .......... until Completion Date (issue of certificate
of Operability) to undertake the Development Works, the Fitting Out Works and the Hotel Moveable
Items MDev 7.1
Developers obligation: to use reasonable endeavours to complete development and fitting out works
in accordance with Base Drawings Specifications, the Design Documents and the Fitting Out Plans by
the Estimated Practical Completion Date and will complete by Longstop Date (X years after date of
Dev Agmnt ................). Time to be extended by extensions allowed to Contractor by Employers
Agent unless caused by act default or omission of Developer 1.1, 1.2 & 1.3
Developer: will keep the Owner informed of the progress and any material
problems or delays affecting the Development Works, the Fitting out Works
and/or the Hotel Moveable Items 5.1
Developer: will keep the Owner furnished throughout with a complete set of
Design Documents as amended and revised MDev 3.5
Owner: any extension to building contract caused by act default or
omission of owner will extend time for completion 1.2
Developer remains responsible notwithstanding approvals etc given by Owner or
Owners PM re Design Documents, Development or Fitting Out Works MDev 11.2
Standard for Club Rooms and Junior Suites: ...........................................
Standards for all other internal areas inc bedrooms: ...........................................
C Variations
Owner serves Owners Request for:
(a) Owners Development Works Variation
(b) Owners Fitting Out Variation
(c) Owners Moveable Items Variation 3.1
10 days
10 days
Developer: implements
Owner: aggregate of
estimate/quotes not paid for
exceeds 200K, owner
deposits total with Bank
3.1.9
21 days
No notice served
Owner:
Owners Project Manager:
Banks Representatives:
may make representations to Employers Agent as to whether Statement should be
issued or what qualification should be made 7.2 Employers Agent not to be fettered
from issuing such Statement at such time as it thinks fit 7.3
F Defects
Date of Practical
Completion
12 months
End of defects
period
Owners PM + other representatives of the Owner: shall be permitted (procured by Developer and
prior notice of date and time to be given) to attend site and project meetings 9.2. Will be allowed by
Developer to attend formal review meetings (held min monthly) 9.5.2.3
Owner, Owners PM: will be allowed by Developer to make representations at the meetings (para 9
meetings or thereafter) to which the Developer will have due regard 9.5.2.4
Owner, Owners PM: will be afforded access to the Premises at reasonable times 9.5.1
Owner, Owners PM: are (procured by Developer) given access to the records of the Development
Works (inc all drawings & specs) 9.5.2.1
Owners PM: will be provided by Developer on request information to enable him to prepare
monthly reports on progress 9.5.2.2
K Indemnity by Developer
Developer: shall indemnify the Owner against all costs arising out of any breach by the Developer,
arising out of the ownership of the Premises prior to the issue of the Certificate of Operability or
arising out of the Development Works and Fitting out Works 11
M Certificate of Operability
Developer gives notice to the Manager ..........13.1
Hotel Opening Certificate as .....
8 working weeks
Provision of Hotel Moveable
Hotel Operating/Occupancy
Certificate as ......
2 working days
Practical
Completion
+ = completion date
N Measurement
The Developer & the Owner: shall attempt to
agree (as soon as practicable) the Internal Area
of each area set out in Base Drawings and
Specifications (in accordance with the Code of
Measuring Practice published by the
RICS/ISVA, 4th ed, 1993) 14.1
10 working days
P Training facilities
Access Date (date certified by Employers Agent for the Owner to
enter certain areas and facilities) but not later than 9 months before
estimated PC
1 week
Estimated Practical Completion Date (26 months from ...... + extensions allowed to
Contractor by Employers Agent) 15.3
Q Liquidated damages
Liquidated damages: to be stated in clause 24.2
of Building Contract to be XXXX per week
16.1
Certificate of Operability
R Claims
Developer: after Completion Date will prosecute claims for the benefit of the Owner for failures by
Professional team or Building Contractor at Developers expense before issue of mg defects cert and
at Owners expense after. Owner may assume conduct of claim by giving notice. MDev 10.
11.1 Definitions
The description of material words and phrases carries the same vital message as
explained under Development Agreements. However, in a joint venture agreement,
there may be the added nuance that the development definitions will carry corporate
overtones. Consequently I must emphasise again the importance of understanding
the meanings ascribed, and ensuring the sense follows through into the body of the
agreement. The following, taken from an example of my own experience, illustrate
the point. Used elsewhere another agreement, another lawyer they would likely
have different meanings.
Approved scheme.
The general drawings, plans and specification of works for the implementation of
the building works, annexed hereto, with such modifications, additions and
substitutions as shall from time to time be required or approved by or on behalf
of the company.
Budget.
The budget for the project prepared by the project manager, and approved by
unanimous resolution of the board and as the same shall, with the consent of all
the shareholders, be amended from time to time.
Building contract.
The building contract entered into by the company for the carrying out of the
building works.
Building works.
That part of the project comprising the carrying out and completion on the
property of the demolition and/or refurbishment and construction of buildings
and other facilities in accordance with the approved scheme together with the
construction of such other works as may be approved by the shareholders from
time to time.
Consents.
All permits, permissions, consents and approvals required by any local or
governmental authority, building regulation approvals, building consents and
licences of whatsoever nature as shall be necessary for the lawful implementation
of the project. (NB: note the implications of this given the range of the definition
Project below.)
The date on which (the company having completed the sale and or letting on
long leases, at a premium of all units) there is no further obligation on the
company to sell or let the units, and the last instalment of any purchase
monies or premiums has been paid to the company.
The date upon which the final transfer of any reversionary or residual interest
in the property by the company to the management company is effected.
The date on which the project expenses have been finally determined.
Project.
The acquisition by the company of the property; the obtaining of the consents
and the carrying out of any works required in order to obtain the consents; the
carrying out, management and completion of the building works; the granting of
leases in respect of the units or any of them; the sale of the companys interest in
the units or any of them; such other matters as the shareholders shall agree from
time to time.
Project account.
The record of income and expenditure relating to the project.
Project expenses.
The total cost and expenses properly incurred or to be incurred by the company
(including all legal, surveyors and other professional and agents fees, taxes,
stamp duties and other fees properly payable) in connection with the
implementation and financing of the project, including but not limited to:
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The costs of the acquisition of the property, and the acquisition release or
modification of any rights, easements, restrictions affecting the same.
The above is not an exhaustive list of the definitions in the document from which my
example is taken, but are those which bear the most significance to the project
management responsibilities. The relevance of understanding the particular
meanings should be apparent. So too should be the breadth of the responsibility
consigned to the project manager.
It pays to know the shareholding structure, voting rights, the authorised capital, and
matters requiring the consent of shareholders, such as raising funds. To take a simple
example, if the project manager foresees a cash shortage and a lack of authorised
funds, knowledge of the procedure and time to procure shareholder approval (which
may not be easily obtained) is of profound importance. This is likely to be stated in
the joint venture agreement but alternatively in the memorandum and articles of
association.
Board meetings, and the directors exercise of delegated powers, will probably have
direct influence on the project manager. He can expect to be their focus of attention,
and his attendance required at most meetings. Therefore, understand the basics.
First, the board meetings. How frequent are they, the venue, what constitutes a
quorum, what is the standard agenda, will a project management report (written or
verbal) be required on each occasion, what issues require a vote, how is a majority
declared, is there a casting vote?
Second, the directors. How are they appointed, whom do they represent, do they
have alternates, how many are there, do they have executive roles within the joint
venture?
These are all pertinent questions, because inevitably circumstances will occur where
prior consultation will be appropriate with certain directors and/or shareholders to
promote a decision towards the project manager s recommendations.
One essential distinction to understand is between decisions that lie within the remit
of the board, and those that require shareholder approval. Although the directors
may represent the shareholding interests, it does not follow that they automatically
have power vested in them to decide on shareholder issues.
If the project manager is acting in a consultancy capacity, it is probable that both his
duties and conditions of engagement will be recorded in a separate document.
Possibly (hopefully) this will be in the form published by the RICS, but alternatively
it will be one drafted by the solicitor to the joint venture company. However, where
project management is provided by one of the shareholding companies within the
joint venture, then the duties are likely to be set out within the joint venture
agreement. Because of this, and the affinity of the project manager with one of the
shareholding parties, it must be recognised that the terms may overtly express the
project managers responsibilities to ensure proper and fair dealing. This is
understandable and, indeed, even if not so prescribed, I would recommend the
project manager to demonstrably show consideration for all shareholders interests
throughout the development period.
I can illustrate this by an example.
On one occasion my company joint ventured an office building with a commercial
organisation whose intention it was to occupy for their new headquarters. Midway
through a 20 month programme, it was apparent that the four storey curtain wall let
in water in an alarming fashion. Interior walls quickly became soaked, and finishes
such as suspended ceilings could not continue. For our partner, the probability of
delayed occupation was alarming, as also were the financial ramifications for the
joint venture company which had to consider its rights and options under the
building contract in face of a nominated subcontractor who professed he could
remedy the problem.
As might be imagined, the issue was examined from every angle, and I reported
frequently and equivalently to the shareholding companies. By so doing, I am
convinced that when I ultimately decided to recommend removal of the existing
installation and appointment of a new specialist subcontractor, the response from
both shareholders was prompt and positive. Yet the implications were immense.
Putting to one side the long term possibility of legal or insurance recovery, the
partners had to finance a 20% increase in the building cost. Our partner had the
further expense of a twelve months delay to occupation.
When set out in the joint venture agreement, it can be expected that the drafting of
the project management duties will be influenced by the relationship of the parties.
The duties may extend beyond the conventional horizons of project management.
This is underlined by the following resume taken from the document mentioned
earlier.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10. The project manager shall notify the company of any immediate or
prospective material change in the building programme or cost of the project,
and shall not commit or incur any material liability on behalf of the company
except as previously authorised by the board.
I do not for an instant suggest this list is perfect. It has many inappropriate qualities,
not least the mixing of corporate and project obligations, the relative similarity of
certain duties and the absence of many relevant services, eg insurance. However, the
list illustrates how a hybrid document, drafted with many considerations in mind,
may not provide a routine brief. Nevertheless, the project manager must recognise
that the eyes of the shareholders are focused upon him and he must organise, direct
and implement accordingly.
If the project management duties are contained in the joint venture agreement, then
so too will be the fee. Although of obvious importance, suffice to say that I would
expect the project manager to satisfy himself on the two primary points:
1. That the amount or calculation of the fee is certain.
2. The manner and timing of payment(s).
12 Finance agreements
Finance agreements the documents which govern the relationship between
developer and financier or funding institution are typically similar in form to
development agreements. However, because of the Institutions significant financial
commitment, it may be expected to demand a close involvement in the
administration of a project. On the principle that he who pays the piper calls the
tune, the project manager must acknowledge the need for the fund to be satisfied
that its money is being soundly invested; consequently, he should set out to reassure
the funds representatives by demonstrating a willingness to liaise and provide
information, provided that contractual responsibilities are not infringed.
The following items are likely to be affected beyond the guidance already given
under the heading of Development Agreements.
Any fees to be paid to the funds consultants are usually treated as part of the total
finance facility and should therefore be stipulated. They are in effect a cost that has
to be serviced by the developer. Certainty is therefore important.
Collateral warranty
Consistent with the attitude of submitting information commensurate with the funds
interest, the project manager should provide the fund and/or its consultants with
minutes of site meetings and other progress meetings. This may have to be accepted
as a specific obligation under the finance agreement.
Institutions are sometimes insistent that they or their consultants should receive
copies of the architects instructions and variation orders, in which event the project
manager should arrange that these be supplied via his own office, giving the
opportunity for any explanatory comment to be added.
It is common practice, and sometimes a term of the finance agreement, that the
developer provides regular cash flow forecasts eg quarterly. These should be
prepared by the project manager and embrace all headings of development outlay,
with information concerning the building cost, based on advice from the quantity
surveyor and/or contractor.
Certification approval
12.9 Tenants
Leases
The funding institution will often demand right of approval to each tenant and
respective occupation leases. The project manager should establish whether the
standard draft form of occupation lease is to be produced by the developer s or the
funds solicitor, but in either event should ensure that the other parties approval to
the text is subsequently obtained.
Approval procedure
12.12 Reflection
A moments reflection will, I hope, convey to the reader the importance of close
attention to the terms and implementation of partnership agreements. It is essential to
each agreement in its own right, it is vital when there are two or more running
parallel on the same project. Two or more partners each with their own consultants
checking on the developers team, each with their own rights of inspection, each
with a completion certificate arrangement, and so on. Strong discipline, founded on
properly formed contract clauses, has to be maintained.
The project manager is at the centre, and it is his task.
Procedures
Contents
13. Design and specification
13.1 Surveys and investigation
13.2 The site
13.3 Services
13.4 Development studies
13.5 Building envelope
13.6 Structural frame
13.7 Architecture
13.8 Mechanical and electrical services
13.9 Prefabrication
13.10 Design accreditation
14. Construction (Design and Management) Regulations 1994 (CDM)
14.1 Health and Safety
14.2 Planning supervisor
14.3 Designers
14.4 Principal contractors
14.5 Clients agent
14.6 Implementation
14.7 Health and Safety Plan
14.8 Health and Safety File
14.9 Miscellaneous
14.10 CDM Briefing Note Brecher
15. Statutory approvals
15.1 Planning permission (Town and Country Planning Act 1971)
15.2 Building Regulation approval
16. Statutory powers and agreements
17. Rights over land easements
18. Insurance
19. Specialist subcontractors
19.1 Architects recommendation
19.2 Performance specification
19.3 Selection vetting
19.4 Performance bonds/corporate guarantees
19.5 Design warranty
19.6 Record drawings, guarantees, cleaning and maintenance
20. The building contract
20.1 Contract choice
20.2 Contract documents
20.3 Tender/Negotiation
20.4 Advance preparation
20.5 Contract administration
20.6 Completion
20.7 Claims
(Continued)
In the UK, concern about contamination of land as a result of previous use has been
fostered by government proposals for legislation, including a statutory register of
contaminated land, plus probable legal and financial responsibilities on those owning
or acquiring land. As a result and although legislation has yet to be enacted
clients and their partners (and not least their solicitors and valuers) are now very
wary of development on land that may be chemically tainted or undermined.
Superficially the past history of a site may not be apparent. The project manager may
obtain some guidance by investigation of title deeds, old maps or the local authority
(see also BRE 318 and 322), but the only certain approach is to instruct a ground
investigation and sample analysis from a specialist laboratory.
Dependent on the status of the clients involvement at the time, this can either be
done as a discreet investigation or combined with the investigation and analysis for
foundation design. Due account should be taken of the preparation time needed to
determine the areas and number of investigations on the site (usually advised by the
structural engineer), the period required for obtaining tenders from specialist
companies, and the anticipated time required for carrying out the works, together
with subsequent laboratory analysis and reports.
The project manager should anticipate arrangements necessary to probe past
physical obstructions within the site, permissions for access, subsequent
reinstatement, and other possible hindrances that may be revealed by inspection.
This is essential for certainty that the conceptual design can be accommodated on the
site as intended. The architect or the structural engineer may be the consultant
through whom the undertaking of survey work is arranged. The consultant may
possess the expertise in-house or, alternatively, wish to appoint a specialist firm
which he will brief.
Boundaries
The ownership and condition of all site boundaries should be established. Consider
whether works will be necessary to protect (eg rendering exposed party walls) or to
maintain (eg underpinning) boundary features and whether notification to and/or
agreement is required with adjoining owners or third parties (see under Third Party
Rights).
13.3 Services
Existing
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Drainage
Water
Electricity
Gas
Telecommunications.
New services
Service companies sometimes demand that new mains are sized in excess of those
required solely by the development; this may be as a result of a modernisation
programme or as a facility for potential development beyond the subject site. The
project manager should obviously direct negotiations towards ensuring that the
clients financial contribution is calculated according only to the needs of his
development.
In the UK, and as a consequence of powers included in privatisation legislation,
service companies (notably water) may levy an infrastructure charge in addition to
the cost of the physical connection works. The infrastructure charge can be a
substantial sum and the project manager should ensure that it is properly identified
so that due allowance is included in the clients budget. As it is in effect a premium
payment, the infrastructure charge may be paid direct by the client and not through
the building contract, thus avoiding unnecessary accrual of contractors on-costs, or
consultants fees.
The project manager should identify the connection point for the developments
main service feeds and consider whether these are appropriate to the development.
Wind
Daylight
Noise
Vibration.
These studies are concerned with the relationship between a development and its
external environment. There are others, more usually associated with the
consultants response to the brief, such as energy analysis. These are better
considered with the design discipline review which follows later, eg services.
A buildings shape, its mass, its height and its relationship to adjacent buildings can,
as we have all experienced, create strange and discomfiting wind forces.
These are unpleasant both for the public at large and the regular occupants of a
development. With the aid of local climatology records, a specialist study can be
conducted replicating prevailing wind forces. From this, the degree and form of any
turbulence can be forecast. Where it is desirable to reduce the forces, the effect of
changes to the building profile can be simulated.
Similarly, daylight studies. For some developments it is considered important to
assess the degree of sunlight that will be received, or shadows cast. This can be
analysed by computer model, giving data based on all daylight hours and all seasons
of the year. This will reveal the effect for each face of a building, including shadow
cast by nearby buildings, and the effect on adjacent open space. The information is
particularly beneficial when evaluating building performance, eg the prospects of
glare, heat gain, and differential thermal movement in the building fabric.
In certain locations noise can be a potential major intrusion. Transport routes, eg
major highways, railways and flight paths, are obvious providers of significant
continuous or intermittent sound. If this is of concern, a specialist study can factually
determine ambient noise levels from which objective decisions can be taken. Where
considered necessary the degree of acoustic insulation to be incorporated in the
building envelope can then be ascertained.
Vibration may be the least frequent of the studies but where applicable is extremely
important. Typically such studies have been necessary when buildings are located
over major transport routes such as railways. These can induce significant vibration
through a building structure. A study will help define the degree of the problem and
assist the structural engineer in designing the solution.
Flat roofs
Flat roofs are notoriously prone to failure. The project manager should carefully
study drawings showing the proposed falls, checking that there is a consistent logic
to the angles and direction flow arrows shown on the drawings; also that the
drainage gullies are correctly located and in sufficient number. These criteria apply
even where the architect proposes what is termed in the UK an inverted roof, ie
with the insulation lying over the waterproof membrane.
For all types of flat roof the project manager should check that adequate falls are
achieved, wherever possible in excess of the minimum standards laid down by
building codes of practice. The principle behind this is that if a leak should occur,
damage will be minimised if water is encouraged to drain away immediately to the
outlets provided.
The practical effect of designing only to minimum standards is that falls are often so
slight that any lack of accuracy during construction may result in ponding or outlet
gullies being proud of the adjacent roof area. A roof which is partly covered with
water will be subject to differential stress as it heats and cools during the daily cycle.
From roofs (whatever their type) to the site outfall, the project manager should check
drawings for the passage, routes and quality of the disposal system. Are there
sufficient gullies? Are the downpipes accessible in case of blockage? Do the
horizontal falls sufficiently incline? Remember, water is the most insistent of the
elements. Tracing and resolving water ingress after development completion is often
difficult, frustrating and expensive. Prevention is far better, cheaper and less
aggravating. I recall a small but pertinent anecdote, borrowed from an architect
friend who trained in Cape Town; his professor one day pointed upwards to the level
of the local water table the top of Table Mountain.
As project manager, check drawings and specifications. Be satisfied that all water
barriers are clearly defined and aptly chosen. If in any doubt, seek verification from
the consultants and/or product manufacturers, the latter being particularly pertinent
where proprietary materials are intended.
Wherever the choice of materials for the building envelope results in joints being
formed on the exterior face of the building, serious consideration must be paid to the
need for rain and wind pressure tests to verify and/or support the choice of joint
detail. This may be as between materials of similar kind (eg adjacent pre-cast
concrete spandrel panels), between differing materials (eg granite cladding and
aluminium window frames), or for a specialist manufacturer s component system (eg
curtain walling). The range of tests can include:
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The project manager should direct the consultants to define testing requirements in
contract specifications, bills of quantity and specialist performance specifications.
Thus the requirement is clearly stipulated at tender stage.
Each of these can be produced with different design subtleties and it may be the
project managers task to secure the optimum solution for each development
(depending on his or her terms of engagement).
The choice of frame cannot be viewed in isolation; the effect of each alternative on
other design, construction and in-use functions must be considered. Primary
headings for review could be:
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Programme
1. Pre-construction
2. In construction
Cost
1. Unit cost
2. Building cost
3. Development cost
Material
1. Availability
2. Alternative sources of supply
Frame
1. Structural grid
2. Floor slab profile
3. Floor loadings
Fire protection/cladding
Pre-fabrication
1. Off site
2. Deliveries
3. On-site temporary storage
Inclement weather
1. Effect on progress of works
Owners insurance.
Although a generalisation, the following example may help. The lead time for steel
is often such that an order for mill production and fabrication must be placed many
weeks before the start of construction; it may therefore also precede the main
contract tender and/or the appointment of the contractor. The order will require an
often significant financial commitment by the client. Not only does this have cash
flow implications but it also has to be considered in the context of what happens if
the result of the main contract tender is unsatisfactory or, for some other reason, the
client decides to abort or defer the start date, or change the design concept eg a
major tenant withdraws just before signing an agreement.
Structural steel is produced to precise dimensions. It therefore imposes a similarly
rigorous demand for design certainty, prior to the date of the steel order, on those
components, finishes and services which are to be fixed, hung or routed through it.
The project manager must assess, many weeks in advance, whether the design
programme will enable this degree of certainty to be achieved in time.
Unit cost comparisons between the three structural forms will vary according to
economic times and the specific building design. The comparison should go further,
however; to take account of related costs, such as fire cladding, floor slab
construction, fixings for other components, overall construction programme times,
and contractors on-costs (eg attendances, cranes etc) to provide a building cost
comparison. Development costs might vary yet again because of difference in the
cash flow profile and finance charges over the programme period.
There are also risk factors to be added into the equation, such as the effect on site
production of extreme cold, wind or rain, or strikes which affect the supply of
structural materials.
Industrial disputes or resource shortages may have a significant effect upon the
supply of structural steel in a country, and this could lead to a preference for
reinforced concrete, providing bar steel can be obtained from inside or outside that
country.
13.7 Architecture
The project manager should review drawings and specifications at every stage in the
evolution of design. Further, and this is equally true of the other design disciplines,
he should expect to comment and advise (or instruct if his brief permits) where
necessary. Conventionally, and in the language of the RIBA, design evolution
progresses through concept, scheme design, detailed design and production
information: four stages in all. In practice the step from one stage to the next is
rarely precise. Nevertheless, the project manager should be alert to and guard against
any one area of design, or a particular discipline, forging ahead if it is at risk from
related or adjacent design which is not at a comparable stage, eg detailing a
suspended ceiling before the lighting units have been selected.
The project manager is the clients watchdog. In addition to checking that the
information on drawings and specification reflects the brief, he should also continue
to think positively and creatively. Much that the consultants produce, the architect in
particular, is an interpretation of the brief. Not every solution, be it concept or detail,
is the only effective way of responding to the brief. The project manager should
encourage the consultants freedom of thought within the context of achieving the
brief.
From philosophy to fact: the design review may be considered in two parts
development function and materials and components.
Development function
The project manager should instruct and review design in the sum of its parts, eg the
dealing room in a broker s office, the service area within a shopping centre, the
changing facilities in a leisure centre, the security system in a hospital. The
judgements will be derived from understanding the clients attitude and, hopefully,
criteria set out in the clients brief. The project manager should form his own
opinion, directing the consultants on changes and refinements to a point where he is
happy to present to the client, or directly confirm (if he has the authority) a specific
proposal or alternative and/or options.
The judgement criteria will vary according to the clients need or expectation, but as
a guide to evaluation I suggest the following:
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A natural progression from development function, but scaled to focus on detail and
production drawings; also specifications.
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Standard design . Wherever possible the project manager should seek design
specifications which are capable of competitive tender, and building elements
which do not require special manufacture or are unique to one producer.
Guarantees . The project manager should identify the guarantees available for
respective products and ensure that these are furnished on completion.
Guarantees should be distinguished from contractual responsibilities created
under any employer/subcontractor warranty form, or the defects clause
provisions of the building contract.
From the outset of design, therefore, the project manager must make clear the
demands of the brief, although this itself may require evaluations of alternative
concepts before final instructions can be given.
M & E services cover a host of facilities, some essential, others optional. ACE
Agreement 4A contains a non-exclusive list of 42 items, starting with acoustical
design and treatment, and ending with window cleaning trolleys. The range is wide
and in the modern era of computerisation potentially very sophisticated.
Evaluation of the design response must be rooted in the brief, eg assessment of the
lighting proposals will differ from that for fire protection and alarms. The project
manager must compile his judgement criteria and be prepared to consider or initiate
options. Simply as an indication, the assessment of alternative air conditioning
systems might comprise:
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Capital cost.
Energy cost . This includes review of energy conservation options which must
in turn be considered in conjunction with other building components, eg solar
control glass.
Future capacity . Facility to add on, or increase loads eg extra cooling for
possible future conference facility.
13.9 Prefabrication
There is an increasing tendency in building design and construction to opt for
components which are manufactured and assembled off-site. Benefits cited for this
approach are improved production quality, less programme disruption as a result of
inclement weather or on-site disputes, and reduced construction periods because of
fewer sequential trades and reduction of on-site wet trades which require time for
curing. These last also add to the weight and cost of the building fabric due to the
moisture content.
The project manager should do his utmost to ensure, however, that the team
recognise the demands imposed by fabrication. They include the following:
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Careful programming of the building contract to ensure that all units can be
taken into the building and moved to their final position (eg the lifting,
moving and placement of entire bathroom units).
The NHBC sets technical standards applicable to the design of all forms of housing.
Drawings must be submitted for approval and NHBC staff also carry out spot checks
through construction. On satisfactory building completion the NHBC provides two
years insurance cover against defects due to faulty workmanship on materials and
from the third to tenth year the house purchaser is protected against loss due to major
structural damage. To secure NHBC accreditation the client must be accepted on to
the NHBC register (including payment of an annual membership fee), prior to the
drawing approval stage; the contractor must also be registered before
commencement on site. Should a qualifying defect occur, the NHBC guarantees
the repair will be carried out at no cost to the purchaser.
(NB: The NHBC may also, if requested, provide independent certification of
compliance with Building Regulations. This is an alternative to an application to the
Building Control Department of the local authority. The project manager should
keep in mind that the NHBC certification is purely an alternative option and
distinguish this from the technical accreditation, with its subsequent insurance
safeguard for purchasers, mentioned above.)
Local issues
1. Legionnaires disease
2. Local wind effects
3. Noise
4. Overshadowing of other buildings and land
5. Water economy
6. Ecological value of the site
7. Cyclists facilities
Indoor issues
1. Legionnaires disease
2. Ventilation, passive smoking and humidity
3. Hazardous materials
4. Lighting
5. Thermal comfort and overheating
6. Indoor noise
A charge is payable for the assessment which is in part determined by the size and/or
complexity of the building.
The project manager should do his utmost to ensure that an early decision is taken on
whether design accreditation such as the above is to be sought. Preferably this
should be decided at the time of the clients brief. Information on the accreditation
approach should then be sought from the agency, and its requirements fully
confirmed to the team. To gain maximum benefit, the accreditation process should
be woven into and be identifiable upon the development programme.
2 Continuity
3 Independence
a. Many design practices and construction companies offer the role of planning
supervisor in addition to their traditional function. Except for small or modest
projects, or perhaps those with an exceptional degree of specialisation, I
suggest the following arguments favour independence;
i. To provide an independent judgement upon the designers solutions.
ii. To better ensure a balanced assessment of issues which straddle two or
more of the design disciplines.
iii. To avoid political or personality pressures that can arise within a
consultant or contractor organisation when it performs a multi-headed
function.
ii. Size. The planning supervisor should have experience of, and be from
a practice which typically deals with, the scale of project being
considered. The issues which arise, and the selection of other
consultants and the principal contractor, will all reflect this criterion. I
M Pei would not be considered an appropriate architect for a church
hall in a small town, any more than a small provincial practice would
be considered as architects for the Canary Wharf tower. The planning
supervisor must be able to work on the same level as other members of
the team, and command equivalent respect.
iii. Complexity. This may derive from various aspects of the
development, such as function of the building, phasing of the works, or
site conditions, eg tunnelling for a new railway. The planning
supervisor must understand the constraints and be able to temper the
Health & Safety Plan to suit.
c. Working with the team. It is essential that the planning supervisor has the
right attitude and is not disruptive. A happy team invariably produces a good
product. A recognition of the issues and responsibilities which generally face
the members of the team, and an interpretive approach to CDM is important.
d. Appointment, fees and warranties
i. Appointment. Whilst CDM has invented the role of planning
supervisor it has failed to recognise the preoccupation of the
development industry with focusing on formal definition of
responsibilities. In the resultant void, those who offer the service of
planning supervisor have presented their own suggested styles of
appointment. This has been followed by the ACE and RIBA with their
respective recommended forms, and there will no doubt be others. In
time, it is hoped there will be consensus, but for the present the project
manager should consider carefully the terms of any particular proposal.
My suggestion would be to have regard to the issues discussed
elsewhere in this guide in relation to the project manager s own
appointment and that of the consultants. In particular, I suggest that
appointments which attempt to spell out in detail the services of the
planning supervisor should be regarded with suspicion. Unless they are
a verbatim extraction from CDM, there is potentially a mismatch or
gap between the appointment and the CDM requirement. My own
preference is simply a statement which confirms that the planning
supervisor will provide all the services required by the CDM simple
and to the point.
ii. Fees. Whilst it is desirable to reach agreement on fees at the time of the
initial appointment this will be difficult in most cases because the
design of the project, its programme and procurement systems etc will
be barely defined, if at all. The response from planning supervisors is
likely to be a time rate. This is fraught with danger for the project
manager wishing to properly control the development budget. The
solution is likely to lie in a compromise approach working to interim
fixed limits initially and then converting to an aggregate lump sum
when the project is reasonably defined.
iii. Warranties. Funding institutions, purchasers and tenants may be
expected to require warranties from the planning supervisor, in the
same way as they are required of consultants and contractors.
Therefore check that the planning supervisor agrees, and his insurers
also! The BPF warranty (see Finance Agreement and Consultant
Appointments) is capable of simple adaptation for this purpose and,
assuming it is used for the other members of the team, has the benefit
of keeping it in a consistent style.
5 Insurance
In addition to professional indemnity cover, the CDM brings the added implication
that responsibility may be owed to a third party, eg member of the public or tenant
employee, if an accident should occur which can be in some way linked to the
actions of the planning supervisor. Confirmation of public liability insurance is
therefore required.
CDM requires the client (project manager) or a clients agent if appointed (see
below) to be satisfied on the competence and resources of the planning supervisor.
In the Approved Code of Practice it is said that reasonable enquiries only are
required, and that the Regulations . . . do not assume that those making
appointments, or engaging designers, planning supervisors or contractors, will be
familiar with all the aspects of the functions of the person they are engaging. The
competency and resource enquiry form in Appendix D2 incorporates the questions
which the ACOP suggests might be made, plus other points mentioned above.
Dealing with the CDM obligation in this manner (together with the project record
Appendix D1) provides a documentary record to demonstrate compliance.
14.3 Designers
The competency and resource requirement is similar to that for the planning
supervisor. For the project manager, however, it means taking account of this at the
time of original selection of the consultants, even at the earliest feasibility stage.
Often, the project manager is appointed some time later than this, in which event he
will need to check and/or arrange very quickly for the competency and resource
enquiry to be issued to those consultants (typically the architect and quantity
surveyor) already selected by the client. It is worth noting that the CDM obligation
to make the enquiry is upon the person arranging for the . . . designer to prepare a
design . . . and similarly for the principal contractor. Consequently and according to
circumstance it could be judged that this is a responsibility which falls to the project
manager.
Appendix D3 provides a sample Competency and Resource Enquiry proforma, again
incorporating questions suggested by the ACOP.
14.6 Implementation
Features of CDM which require the project managers particular attention appear on
the second page of Appendix D1, and may be summarised as follows:
Notification to the Health and Safety Executive (local office).
1. Appointment of clients agent. CDM specifies the information required, in
what is termed a declaration. The HSE must formally confirm receipt.
2. Notification of project. This must be given by the planning supervisor.
I suggest the project manager (and client) should have copies of both the above
notifications, hence the reference on the project record.
14.9 Miscellaneous
Client information
CDM requires the client to provide a planning supervisor with information he may
have about the state or condition of the premises at which the work is to be carried
out, and which is relevant to the function of the planning supervisor. It is an
obligation of which the client might not be aware, but which is consistent with the
responsibilities of the project manager. As time passes it is expected that Health &
Safety Files for previous works at a building will be amassed, and will in effect form
a substantial part of the information required by the planning supervisor.
In the words of CDM, Every client shall . . . ensure that the information in any
Health & Safety File . . . is kept available for inspection by any person who may
need information for the purpose of complying with the requirements and
prohibitions imposed on him by or under the relevant statutory provision . . ..
Also A client who disposes of his entire interest . . . (shall deliver) . . . the Health &
Safety File to the person who acquires his interest . . . and ensure such a person is
aware of the nature and purpose of the Health & Safety File. These obligations
make it important for the location of the Health & Safety File (or various copies of
it) within the clients organisation to be clearly identified. The Health & Safety Files
for any future or subsequent works ought also to be added so that there is a clear
record through time. It is a matter which the project manager should bring to the
clients attention, and promote agreement on a corporate policy which is understood
by those with responsibilities in the clients organisation.
It may be prudent for one copy of the Health & Safety File to be held with the title
documents of the property. However, this may not be convenient for those
administering maintenance contracts or an ongoing programme of works. They
would need their own copies. The project manager should therefore establish the
number of copies required and their distribution within the clients organisation.
There is a further consideration where a building owned by a client is in multioccupation. Whilst the clients responsibility in respect of his own works is apparent
from CDM, it is less defined in respect of works which tenants or others might carry
out (being clients in their own right). There is a strong argument to suggest that the
client should be supplied with a copy of the Health & Safety File received by any
tenant. This can be regulated through lease terms or licences approving works, but
requires a pro-active approach to management. It is a subject which the project
manager should anticipate, and bring to his clients attention.
Briefing Note
The Construction (Design and
Management) Regulations 1994
1. Introduction
This Briefing Note has been prepared by Kevin J Greene, a construction law partner in the firm
of Messrs Nicholson Graham & Jones incorporating Brecher & Co
Briefing Note
The point to recognise is that CDM places positive
duties on the client in making the key appointments
and in setting the scene for the way in which health
and safety is managed throughout the project. A client
may need to seek professional help to do this but
CDM seeks to ensure that the planning supervisor is
there to advise him and that designers take steps to tell
him about their duties.
a.
prepares a design, or
b.
Briefing Note
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to ensure that the other contractors (ie. subcontractors) comply with their obligations on
health and safety matters,
Briefing Note
Table C sets out certain general points which we
suggest should be considered. The points listed are not
intended to be exhaustive and each project must be
considered on its own merits.
4. Transitional provisions
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5. Conclusion
It is essential that clients, professionals and contractors
are aware of, and comply with, the statutory
obligations and liabilities placed upon each of them by
CDM if they are to avoid the penalties.
TABLE A
SUMMARY OF THE KEY DUTIES OF THE CLIENT, PLANNING SUPERVISOR,
PRINCIPAL CONTRACTOR AND DESIGNER
Client
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Planning Supervisor
Principal Contractor
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Designer
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NB: The information in this Table has been taken from HSE Booklet C500 PML 54.
TABLE B
SUGGESTED ENQUIRIES TO BE MADE BY THE CLIENT
IN THE APPOINTMENT OF RELEVANT PERSONNEL
Planning Supervisor
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Principal Contractor
15 Statutory approvals
Government or Regional Authority regulations governing development, whilst
rooted in the respective laws and custom of each country or state, can nevertheless
be viewed in the context that they are usually intended to control:
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Land use
Aesthetic quality
Design standards
Construction standards.
The Town and Country Planning Acts the first of which in 1947 established
the framework which survives today, despite subsequent Planning Acts which
have modernised or extended the system contain the procedure for gaining
approval to land or building use, and for consent to building mass and
appearance. Note: They are currently under review see Section 16.
The Building Acts control detail design standards and matters such as
structure, thermal insulation, public health, fire control and escape. They also
require on-site official inspection during construction as a check on building
standards.
Both the Planning and Building Acts are administered by local Councils but with the
distinction that elected Members make the primary planning decisions, albeit
advised by their officers, whilst assessment and approval under the Building Acts are
made by the officers. In both instances, however, there is a right of appeal for the
applicant, which is scrutinised and determined by central government.
The notes which follow are necessarily founded upon the system operating in the
UK, but are indicative of the considerations necessary under any sovereign
legislation.
Presuming the need for planning permission has been established, the project
manager should clarify who is the determining authority and, for the project under
consideration, the extent to which other authorities must be consulted or have power
of determination on strategic or specific grounds (eg highways).
Type of application
Application documents
Usually the architect will establish (but the project manager should check) the
quantity and quality of information required by the Planning Office. The project
manager should vet all the application documents before submission, including the
written responses on the application form itself. Planning permission attaches to
land. It is not normally personal and therefore the application need not necessarily be
made by the client; the architect, project manager or vendor are equally suitable
alternatives according to circumstance, but any agency should be disclosed. It is also
vital to identify the official notices that have to be served or published and ensure the
correct timescales for these are observed. Guidance is usually contained in notes
issued by the Planning Authority accompanying the blank planning application
forms.
Illustrative materials
The project manager should consider (usually including informal consultation with
the Planning Officer and architect) whether it would be appropriate to provide
illustrative material such as a model, perspectives, aerial photograph or written
description which, although not forming part of the formal application, would help
Officers and Members of the Council to appreciate better and gain confidence in the
clients proposals. Much, however, will depend on the approval procedures.
Approval procedure
Prior to submission, the project manager should ascertain the likely timescale for
official consideration of the planning application and the probable date(s) at which it
will be heard by committee and thereafter given full Council approval. Once an
application is complete, a decision is required to be given within two months, in
default of which an appeal may be filed.
In the determination of applications the local planning authority is legally required to
take the development plan and any other material consideration into account. With
the former, the local plan and unitary development plan (UDP) are the most
important, as they are the ones which identify sites. Other material considerations
can include previous decisions on the site, car parking requirements, the effects on
neighbours and many more.
The development plan is the most important consideration when determining
applications. If a proposal is in accordance with it there will be a presumption in
favour of the application. If it is not, the presumption will be towards a refusal.
Use Classes: Town and Country Planning (Use Classes) Order 1987
When seeking planning permission, the project manager should take care that the
permission sought is ascribed to the correct Use Class Order, or combination thereof
in the case of a hybrid development. This is of particular importance to the
investment value of the completed project and to the ability of tenants or occupiers
to dispose of their interest in the open market. The Order gives a certain freedom of
use within the Classes.
The description of the permitted use is most important when dealing with industrial
and warehouse estates where it may be difficult to anticipate the full range of
activities that will be carried on by tenants. Unless the permitted use stated in the
permission is sufficiently broad, it may be found some proposed lettings will be
prejudiced because the trade process of the tenant(s) does not fully comply.
Another phenomenon is the growth of business, science and industrial parks, where
the client will require considerable flexibility to meet the requirements of tenants
whose business may, in varying proportions, comprise warehouse, manufacturing,
assembly, research and development, computer suite, offices, canteen, etc. The
category B1 in the 1987 order makes it possible for change of use between offices
and light industry and vice versa without planning permission. In such instances the
use described on the application is best first discussed informally with the planning
authority. Some are more flexible than others. Lengthy developments carried out in
phases should be given special consideration for their planning time limits.
Grant of permission
Where this situation arises the project manager will review with the consultants and
client the overall strategy to be adopted and in so doing he should clearly establish:
1. The date by which the appeal has to be made (six months from refusal or
deemed refusal).
2. Grounds for appeal (eg the Planning Authoritys decision is ultra vires or the
grounds for refusal of imposition of conditions are unreasonable).
3. Conduct of the appeal (eg written submission, public inquiry, informal
hearing, appointment of advocate).
4. The cost and time implications of the alternative appeal procedures and the
chances of success.
5. Alternative means of overcoming refusal (eg submission of fresh application
with compromise amendments).
If permission is granted by the local planning authority, the Secretary of State for the
Environment (in England) may, if he wishes, call in the application (especially if
there have been a number of objections) for review at a Public Inquiry. In that event
the project manager must determine the nature and number of expert witnesses who
should be called on to argue the clients case, taking expert guidance as necessary on
their selection and appointment.
Until Listed Building Consent is granted, it is a criminal offence to demolish
property.
Planning fees
Fees payable on application for planning permission are governed by the Town and
Country Planning (Fees for Applications and Deemed Applications) Regulations.
These are periodically reviewed and changed by the Department of the Environment.
Fire Officer
The Fire Officer s approval to matters such as means of escape, smoke extraction
and fire protection systems is secured through the formal Building Regulation
application, ie the Building Inspectors office, but informal direct consultation is
usually possible. Although operating within the Building Regulation Codes of
Practice, the fire officers powers of interpretation are significant and very often a
matter of individual Brigade Officers discretion. It is advisable for the project
manager to ensure that the consultants obtain an early and clear understanding of the
Fire Officers attitudes, as these can have a substantial influence on concept and
schematic design, and also costs (eg sprinkler installation).
Waiver
Where designs for the project do not comply with strict interpretation of the Building
Regulations but are nonetheless considered satisfactory by the consultants because
of other factors, application for a waiver may be made as part of the Building
Regulation application. Until waiver consent is received, the client is at risk in
allowing detailed design or construction to continue, but waivers are a common
procedure and the project manager should therefore be able to evaluate the degree of
risk with guidance from the consultants.
Consent document
The original of the Building Regulation approval form should be supplied to the
client and/or his solicitor to be placed with other title documents for the project.
The fees payable are governed by The Building (Prescribed Fees) Regulations and in
respect of all work, other than domestic, are paid according to a scale of charges
(Table 4) based on 70% of the estimated building cost. The fee is paid in two stages,
the first on application for plans and calculations approval, and the second (75% of
the total fee) as and when site inspections occur. The project manager should be
clear whether the inspection fee is to be included in the main contractors
responsibilities.
The following are extracts only from Table 4, for guidance:
70% of estimated cost
Plan fee
Inspection fee
20 000 24 999
86.25
258.75
50 000 59 999
166.75
500.25
293.25
879.75
1 046.50
3 139.50
1 362.75
4 088.25
230.00
690.00
Planning gain
Section 106 Obligations are a charge on the land, and as such will be entered on
the Local Land Charge Register by the planning authority. The project manager
should endeavour to obtain the authoritys acknowledgement that obligations under
a Section 106 Agreement have been discharged so as to ensure the entry can be
cancelled. There are procedures for clearing off Section 106 Agreements which have
become stale.
Sections 247 and 257 Town & Country Planning Act 1990
Appropriate to closures arising out of, or in consequence of, the exercise of planning
permissions. Administered through the local planning authority (which proposes the
Closure Order) and the Minister (who confirms it), often following a Public Inquiry.
The procedures can consume a great deal of time and effort and must precede
development proper. Development plans and highway plans should be minutely
checked to make sure that all necessary closures have been spotted and are being
arranged.
Road adoption
It is important to note that the police have no authority in areas to be used by the
public but which have not been dedicated, and are usually reluctant to enter these
areas to indicate a presence. They will enter under police powers legislation where
their presence is requested or the occasion (eg breach of the peace) demands. The
project manager should advise the developer to consider carefully his policy for
developments such as shopping centres and office piazzas, having regard to security,
freedom to undertake future redevelopment, etc.
Public utilities
Electricity, water and gas supplies and diversion of existing supplies are governed
by, for example, the Electricity Acts and Gas Acts. It may be broadly stated, having
regard to the monopolies created by such legislation, that there is an entitlement to
the supply of these public utilities for the benefit of the land.
Where a development involves interference with existing services, it is necessary to
arrange for their stopping up and diversion to be covered by an agreement with the
utility company concerned. Most of the costs associated with stopping up and
diversion works are payable by the developer, but occasionally improvements can be
tacked on for the benefit of other land and for which the developer should not be
expected to pay.
(NB: Infrastructure charges. See reference under Design.)
Rights of light
If obstruction is claimed by an overlooked site, the test of whether the
proposed development must be cut back, or the loss is compensatable by
money, relates to the amount of light left and reaching the claimants
windows, and not the amount of light lost. Surveyors specialising in this work
are often appointed by developer and claimant to assess and agree the
valuation.
Wayleaves
Legal agreements primarily used to record the right for services to pass over
or through adjoining lands, whether or not these are publicly or privately
owned. The project manager must review any existing wayleaves over either
his development site (ie for the benefit of other parties) or which the
development site enjoys across adjoining land. The client or his lawyer should
be able to assist with this information.
The project manager should also consider whether any existing wayleaves can
be terminated or need amendment if services are to be repositioned, coupled
with securing wayleaves for any new services required to run over adjoining
ownerships. The agreements required can only be obtained through private
negotiation.
Rights of way
These are normally reasonably apparent from visual inspection where the site
is in an urbanised area, but in the countryside particular care is needed (eg
land for out-of-town shopping centres). In any event, the project manager
should seek clarification from the clients lawyer, especially as to the means
of terminating or altering existing rights of way. Often these arise through use
over a long period (prescription) and are not recorded in any formal
document. Preservationist groups can be very knowledgeable and exacting
when fighting to protect rights of way!
Frequently a new development will closely abut or be physically tied in to an
adjacent property which is in separate ownership. In Greater London, the
London Building Acts convey a statutory right for the developer to undertake
his works, provided the right of support of the adjoining building is not
withdrawn, appropriate forms of notice are served on the adjoining owner(s)
interests, the works to be undertaken are properly described in advance, and
the adjoining owner(s) (there may be more than one, eg freeholder, ground
lessee, leaseholder) are correctly protected and/or compensated (eg upholding
of existing foundations during excavation, payment in lieu for cracks or other
damage caused by the undertaking of the development). Invariably a Schedule
of Condition of the adjacent property should be prepared and agreed between
the parties before any work starts on site.
Outside Greater London the automatic statutory right does not apply, although
there are some places with their own special legislation (eg Bristol), and the
only way in which the developer can secure permission to alter or tie in is by
private negotiation.
The work of serving notices (where applicable), agreeing Schedules of
Condition, settling compensation etc is usually undertaken by surveyors who
specialise in this area (frequently building surveyors).
REFERENCES
18 Insurance
Summarised below are a number of insurances and related activities. Each should be
reviewed and applied according to the merits of the project in hand. The client will
probably have insurances in place for existing interests, and through this is likely to
have an established in-house or external brokerage arrangement; possibly too a
direct link with one or more insurance companies. It follows therefore that the
project manager must seek guidance from the client of any preferred liaison through
which insurances are to be placed. For ease of reference I have assumed in the notes
below a direct liaison between the project manager and insurance company, but in
practice it may be that the contact is through a third party.
In approximate order of occurrence for a typical development project, the project
manager should review and implement as necessary the following.
Inform the insurer prior to completion of purchase and resolve the value and nature
of cover required. Special regard should be paid to third party liability if the
premises purchased will remain empty; consider ancillary measures such as
terminating services, dangerous or dilapidated structures, and security (including
prospect of squatters).
On commencement of demolition or start of new development, advise the insurer to
alter, reduce or terminate insurance cover on the property concerned.
Design
At schematic design stage, ie 1:200 scale plans or larger, the project manager should
ensure that drawings and specification information are provided to the insurer for
review and comment. (NB: It is important in the UK to ascertain whether design
proposals conform with FOC rules Fire Officers Committee which is a standing
committee of the leading insurance companies that sets guidelines by which
buildings are assessed for standard or premium rate.)
Non-conforming features giving rise to premium loading should be identified, as
also should suggestions for alternative/additional designs and/or materials which
may attract reductions in premium rating (eg sprinklers, drenchers, fire alarms, etc).
From the draft documents, when first received, extract relevant insurance and
liability clauses and pass to insurers for comment.
It is often possible to obtain indemnity insurance, either for the clients direct benefit
or with protection for associated development partners and/or tenants. The
availability of cover and the premium, usually a once and for all payment, are
dependent on individual circumstance, but this is often a suitable way of overcoming
a development constraint, the original purpose of which is probably now defunct.
A form of insurance intended to give the client financial protection from the
consequences of delay caused by encountering archaeological remains which have to
be investigated. Availability of insurance and related premium will depend on the
facts of each case, and the project manager should evaluate accordingly.
Building contract
Advance notification should be given to the insurer of the proposed form of building
contract, the approximate value and the programme period including anticipated start
date. Phased completion(s) may be intended prior to full practical completion, in
which case the project manager should give details, including the character of any
third party occupation/works likely to occur.
The project manager should request the insurer to respond with guidance on
treatment of the insurance clauses under the proposed building contract. Usually the
contractor is responsible for insurance of the contract works, materials and third
party liabilities, but great care should be taken on the following aspects.
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The sum for third party insurance should be assessed relative to the physical
risks present at the site. The indemnity clauses under standard building
contracts are not all-embracing. The degree of client risk for third party
liability should be reviewed for each respective project. The project manager
must secure instructions as to the amount and scope of cover required.
There will also be fees to pay for the insurance company to employ consultants who
will vet drawings and calculations produced by the developers consultants and
inspect construction.
In its present form BUILD is unlikely to remove the requirement for collateral
warranties, or alleviate the need for consultants to carry their own professional
indemnity insurances.
Performance bond
Practical completion
Prior to the anticipated date of practical completion obtain from the appointed
quantity surveyor an estimate of the current reinstatement cost.
The project manager must immediately inform the insurer of the extent of the
property for which practical completion is accepted and the current
reinstatement value.
Tenants works
Part of the fitting out undertaken by tenants will, on completion, comprise the
developer s structure, for which the latter usually carries property insurance
responsibilities (eg plastering, electrical wiring). The project manager should secure
details and costs from the tenant(s) and inform the insurer accordingly.
Claims
Wherever the project manager believes circumstances may give rise to an insurance
claim, he should notify the insurer immediately.
The project manager must particularly have regard to events which affect insurance
responsibilities on behalf of any development partners and ensure that there is
compliance in all respects with the clients obligations under legal documents.
19 Specialist subcontractors
A principal feature of the UK design and construction industry is the use of
components which in whole or part are designed, manufactured, assembled and
installed by specialist companies; these form a major physical and financial part of
most commercial development building contracts. The role is performed by
companies who thus cross the traditional boundary of responsibilities between
professional consultants (design) and contractor (building). In consequence,
principles of appointment have evolved which conventionally place a considerable
degree of responsibility with the client. There are numerous variations to the basic
approach and the project manager ought therefore to review with his development
team the particular arrangements to be applied to any given project. The main
considerations for the project manager are set out below.
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The speed with which it is essential to achieve a start on site and/or complete
the project. This may influence the quality and quantity of the design
information that can be produced pre-contract and the timing and method of
appointment of specialist subcontractors.
Standard clauses. The criteria mentioned above offer a basis from which the
consultants can advise the project manager of any adjustment to the standard
terms contained in the appropriate form of contract. In receiving their
recommendations, I do urge the project manager to reflect on whether the
consultants are keeping faith with the principles of the contract adopted.
There are occasions when consultants propose changes which run counter to
the principle, either out of concern for the clients interest (in my view
misguided) or sensitivity to responsibilities closer to home! The project
manager must maintain the equilibrium of responsibility this is in the
clients interest.
Responsibilities are similar to forces: when they are spurned or off-loaded
they often produce an opposite reaction not always equal, potentially greater
and often misunderstood.
Standard contract forms require the input of data to make them effective, eg
the dates for site possession and completion of the works. Certain of the
responses should be self-apparent, but others hinge on priorities and attitude,
hence the following comments:
Date for completion . When seeking tenders there is the option to specify the
period for the works or leave it open for tendering contractor(s) to bid. I will
say only that I believe the judgement of the practising expert (the contractor)
is the more reliable bet.
Bills of Quantity
Whilst the Bills of Quantity as a whole may be of interest to the project manager, it
is the preliminaries section (or its equivalent in other forms of documentation) which
should always command attention. It is here that the specific circumstances of the
project (as distinct from the standard conditions) are conveyed. This will form the
backbone to the contractors understanding of the working arrangements and may
influence their attitude to a tender. Preliminaries which demonstrate thorough
preparation and a responsible approach can but add to contractors confidence when
pricing and, after selection, the attitude of trust required for the construction phase to
be conducted successfully. The following are potential items for inclusion.
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Site possession . The date the contractor is to be given control. If the site is to
be handed over in phases, then the dates for each plus a clear definition of the
respective boundaries.
Access/egress. The local routes and entries to the site to which contractor
vehicles and work personnel are restricted. Also any particular requirements,
location or restriction on contractors parking.
Health and safety . The statutory or other requirements which the contractor
is required to observe.
Programme. Consider the style and detail of programmes required from the
contractor(s) with their tender and/or during the contract. Also stipulate any
particular events, dates or links that are to be included.
Valuation dates and certification. State the intention. Remember that where
the employer is to recover monies from a third party, such as a funding
institution, the date schedule may need to be worked out by first referring to
the funds payment cycle.
Records. Confirm both the nature and the timing for the contractors
submission of as built records, operating and maintenance manuals,
guarantees, and test certificates.
Provisional sums
Drawings
There are two aspects to this: the drawings issued with the tender documents, and
those attached to the signed building contract. Although I would always advocate the
project manager prompting the consultants to complete all construction drawings in
time for tender, in the real world it has to be acknowledged that this is rarely
achieved. Due to the time difference between tender and contract, revisions and
additions to drawings often occur. At both stages the project manager should check
that the drawings adequately define the works to the standard expected, and for the
building contract obtain confirmation that the financial effect of any revisions is
negotiated and included in the contract sum stated in the building contract.
Specification
Performance specifications
These will be required for specialist items such as lifts and curtain walling. Similar
consideration applies as for the general specification but in addition the project
manager should expect to find, or draft, requirements for tests or certificates, product
guarantees, performance bonds and/or warranties, and advice in respect to repair and
maintenance. For the last item I would recommend that each specialist be required to
include in his tender a sample maintenance contract, including rates, which it is open
for the employer to accept upon completion of the works.
20.3 Tender/Negotiation
The analysis of contract type, mentioned earlier in this chapter, will likely include
discussion on this topic. The reasons usually advanced for competitive tendering are
perhaps self-obvious, being essentially one of achieving the cheapest price and/or
shortest programme. As a generalisation this is true, but to assume these are the sole
criteria for decision-making is to overlook the circumstances needed for a tendered
contract to operate successfully and the benefits that can accrue through negotiation.
Tender
The information provided for tender should be very substantial, if not complete.
Adequate time must be allowed to the contractors to comprehend all the information;
remember they are seeing this for the first time, whereas the client and his team have
probably lived with it for many months if not years. The contractor will be obtaining
many of his prices by sub-tendering and if reliable bids are required time must be
allowed, having regard to the scale and complexity of the works.
The time for return and opening of tenders should be stipulated and wherever
possible the contractors should be invited to attend the tender opening. After the
effort required of them they are at least entitled to see the fruits of their labours and
make a judgment of their bid against others received. In the round this is of benefit
to all in the development industry. Usually the bid(s) most preferred will be called in
to give the clients consultants the chance to check that the bid is complete (it is
surprising how often items are found which have not been priced) and that the
pricing addition is arithmetically correct. Dependent on the tender requirements,
programmes, method statements etc, may also be requested. At this point the project
manager may also want to take a lead role by interviewing (with the consultants) the
contractor(s) to satisfy himself on matters such as resourcing, programme phasing,
and attitude!
Frequently, the compilation of contract documents for client and contractor signature
takes longer than the mobilisation period needed by the contractor to make a start on
site. A letter of intent is therefore often issued. This must be prompted by the project
manager, who should also review the draft of the letter prepared by the consultant
usually the quantity surveyor or contract administrator. Thereafter, the project
manager should continue to prompt the early completion of the formal contract.
There is never a good reason why this should take many weeks or months.
Negotiation
As another generalisation it can be said that whereas most clients will probably
accept with little question a recommendation to procure by competitive tender, they
instinctively distrust negotiation. The implication of a commitment to one contractor
before a full price has been submitted sets nerves jangling. Yet there are many good
reasons why negotiation may be the more prudent option.
Negotiation offers the opportunity to include the contractors expertise in the precontract preparation. It might therefore be considered appropriate that, for works
which are generally complex or require particular technical expertise, assessment of
alternative construction methods and perhaps more generally on buildability is
directly available to the team, as also construction programme analysis. Quality
standards are another aspect which can benefit through pre-contract understanding
and preparation. The contractors knowledge of specialist subcontractors may be
invaluable in determining those who have the necessary skills and resources.
A less considered advantage to negotiation can occur in either boom or bust cycles
of the industry. In a strong market there is a lot to be said for commanding the
attention of one contractor and wedding him to your team. The contractors own
returns in terms of profit, overhead etc, and his knowledge of contract rates, can be
used to give certainty to the budget estimates instead of lying prone to the hype of a
bullish competitive market. At the bottom of the cycle, when contractors resources
may be very lean and a climate of business failures generally abounds, it might be
considered an advantage to identify a proven contractor and secure his commitment
to contribute to the team. Once again, there is the benefit gained of the contractors
knowledge of subcontract rates and the current corporate status of specialists.
Selecting a contractor for negotiation will usually require some degree of
assessment, often in the form of presentations and discussions. One approach which
seeks to harness the benefits of both competitive tendering and negotiation is a twostage tender. Broadly stated, a selected group of main contractors is asked to tender
their requirements for profit, overhead and possible preliminaries, at an early stage
of the pre-contract programme based on information prepared by the clients team.
Having made the selection, the chosen contractor then works as a member of the
clients team and ultimately secures tenders for the subcontract works which are
assessed in conjunction with the consultants. The arrangement may offer programme
advantages, as the contractor can secure specialist tenders as the design information
becomes available, rather than wait for the entire construction information to be
completed. Crucial packages can be highlighted and, if tendering is advanced, time
for reassessment built in without prejudice to the overall programme.
Demolition/site clearance
The removal of existing buildings and the diversion or stopping up of main services
is an exercise that can often be carried out separately and without prejudice to the
main contract. The work can be carried out during the pre-contract programme.
In the UK, the one qualification the project manager must bear in mind is to check
that planning permission has been granted if the existing buildings are in a location
where prior consent is needed, such as a conservation area.
Consideration must be given to whether foundations and any basement are to be
included in the removal exercise. The relevance of this should be apparent from
discussion with the team. Similarly, a view must be taken of whether it is
appropriate to leave any of the material stockpiled on site to act as hardcore for the
new construction, or whether there are items such as artifacts which are to be
carefully removed and placed in storage. The taking down of part of a structure may
demand measures for upholding adjoining property, eg by shoring or protecting the
remainder which is left standing.
Requirements such as these should be clearly stipulated in the demolition tender and
contract.
Advance orders
A review with the team should highlight materials or elements whose lead-in time is
likely to be too long to fit with a contractors programme if an order is not placed
until the main contractor has been appointed. Structural steel and lifts are typical. By
placing an advance order and then novating to the main contractor, the client
protects the programme, but at the risk of a financial commitment to the supplier or
specialist ahead of receiving a main contract tender and being certain to proceed.
The project manager must recognise the risk judgment required and advise the client
accordingly.
Information
In whatever form information is issued to the contractor, the project manager should
be satisfied that it is always provided in ample time for the contractor to perform his
tasks. These, it must be remembered, include obtaining quotations and/or
arrangements with subcontractors, co-ordination with other trades, ordering and
procurement of materials and possibly other special arrangements such as storage,
crane time and access scaffolding. The clarity and content of information should be
reviewed. It is often worthwhile obtaining an opinion from the contractor but
through informal discussion!
Architects instruction
One option available to the project manager is to instruct that all AIs must receive
his approval before they are issued to the contractor. To do so draws the project
manager directly into contract administration, slows the process, and undermines the
status of the architect. I would therefore suggest that any such control should first be
considered very carefully, but if needs must . . . !
Subcontractors
Perhaps self-obvious, but the procedures written into the contract for main contractor
recommendation and consultants approval of subcontractors should be observed.
These may include specific requirements as to corporate information, test
certificates, sample materials etc. Certainly, where drawings are to be produced by a
subcontractor for approval by the consultants, this process needs to be monitored.
If specialist subcontractors are to provide warranties to the client, as is likely in the
UK, the submission and completion of these too should be included in the
monitoring record. As suggested elsewhere in this guide, I recommend that
specialists tendering to the main contractor should be obliged to include a signed
copy of the warranty form set out in the contract documents. Thus the client has only
to add his signature to the warranty of the chosen subcontractor for the process to be
completed.
Method statements
This too should be a monitoring issue, checking that the statements called for in
contract conditions are submitted in good time by the contractor and
reviewed/approved by the consultants.
Meetings
Being a focus for recording progress and reviewing issues, an early requirement of
any building contract is to establish the regular meetings that are to be held and their
organisation, eg frequency, location, chairmanship, agenda, attendance etc.
Site meetings are normally chaired by either the contractor or the architect/contract
administrator. To avoid imprecision, it is best if the responsibility is stated in the
tender documents. However, this is no guarantee of the quality of chairmanship or
minutes. Some latitude for individual style is desirable if only to make life
interesting, but should not be treated as an excuse for inadequate reports and
incoherent minutes. If he judges the need, the project manager must request a more
adequate record.
Progress reporting is particularly important. The assessment of individual activities
should be in a style which enables the critical issues, whether localised or of broader
influence, to be seen in context. To assist this, I recommend that progress reports on
individual activities be stated as so many days or weeks behind/ahead of programme,
rather than in percentages. 30% behind on a two-week activity is very different from
30% on twenty weeks. Six days or six weeks is instantly meaningful.
Building inspector
Visitors book
A modest but occasionally very useful item, not least because if correctly maintained
will record visits by health and safety inspectors or third parties who may be of
interest to the client, eg prospective tenants.
Before moving on, I would just like to emphasise that whilst each of the above has a
relevance and importance, they should only be regarded as integral elements of the
project managers armoury. A ritualised approach will not of itself bring success.
The project manager must be proactive in moving amongst his team, taking
soundings, sensing the confidence factor in comments, observing organisation on
site, noting the telltale signs of (in)efficiency in and around the site managers office.
As I once heard it expressed, the smell of the concrete. This is where the project
manager will feel the pulse of construction and where he too can generate
enthusiasm and belief from his own attitude.
20.6 Completion
Completion arrives in two stages: completion of the works such that the employer
can take possession and use the building and, some time later, completion of the
administrative requirements of the contract.
Commissioning
This particularly applies to the services, but also related equipment such as lifts and
window cleaning equipment. Whilst the specific requirements should be spelt out in
the contract documents, and time allocation be included on programmes, the project
manager ought to enquire reasonably ahead that the consultants and/or contractor(s)
have made preparation. Often they appoint independent engineers to carry out this
task. A related consideration for the project manager is possible introduction of the
management organisation who will be responsible for future maintenance; the
opportunity to observe commissioning can then be treated as part induction and part
reassurance of the integrity of the installations.
Although an extension of time may be awarded at any time during the progress of
the works, it is at and around the time of completion that it takes practical effect.
Similarly, any certificate of non-completion for the contractors failure to complete
on the date specified in the contract, or as amended by an extension of time. The
point here is that the project manager must be alert to either circumstance, partly for
reassurance that contract responsibilities are observed (and in turn the clients
interest protected) and also because of the practical implications there may be for the
use and occupation of the building. The project manager is the vital link. Foresight
and communication provide the best route to a pragmatic rather than emotional
client response.
The contract should state the time by which the contractor is to deliver these
documents. Frequently this is defined as by the completion date so that in effect the
client is able to commence maintenance with full information to hand. Whatever the
requirement, it is worth questioning some weeks earlier the progress in preparing the
documents. There is nothing more frustrating than for a building to be physically
complete but for the issue of the completion certificate to be jeopardised through
failure to have the records available.
In an ideal world, snagging schedules would not exist. However, we deal in reality
and unfortunately they are capable of exploitation. When it suits the architect and/or
client, they may argue that there should be not a single snagging item. On other
occasions the pressure for handover may lead to schedules of excessive length being
accepted. There is no simple solution, but it is a time for the project manager to be
proactive in the cause of rational thinking.
The UK court action between contractor John Mowlem and financier/client Eagle
Star Insurance Company, although perhaps extreme of its type, nonetheless
illustrates the commercial pressures that can bear down on a building contract
relationship.
The transfer of insurance responsibility must be executed. The project manager must
see to it that the clients insurers are notified the instant the certificate is issued (or
indeed forewarned) and that they are also provided with an estimate of the
reinstatement cost. The notification should be confirmed in writing immediately.
Labelled and scheduled keys should be received from the contractor and passed on
to the client or its authorised representative.
Mains services metres should be read in conjunction with the contractor in case of
subsequent need to apportion accounts from the supply companies.
Determine with the contractor the date by which this will occur. If there is snagging
work to be done after the practical completion, the contractor may need some
continuing facilities, even if scaled down from what has been required for the main
contract period.
Defects
If and when they arise during the defects period, relevant items should be reported
formally to the contractor. Both the architects notice and the contractors response
should be monitored to ensure the issue is understood, whether or not remedial
attention is considered urgent.
A full and formal inspection is required at the end of the defects period. A prompt to
the consultants a few weeks beforehand never goes amiss, and arrangements for
access will need to be made if the building is occupied, both for the inspection and
for the contractor to carry out any subsequent works. There is a tendency at this
stage of a project, when the contractor has no permanent presence on site, for the
time taken to attend to defects to drag on. It pays therefore to check that the
contractor has made definite and organised arrangements for the various trades and
subcontractors that may have to return to the site.
Completion of defects is marked by the issue of the architects certificate of making
good defects (in JCT language). Again it is a matter of contact with the architect, and
other consultants where relevant, to ensure they are checking satisfactory completion
of the defects works, and the certificate is issued immediately after.
Final account
Final Certificate
The last act! Once more, this should be a matter of procedure which simply requires
the project managers observance to ensure it occurs in timely fashion. It is triggered
by the issue of the certificate of making good defects and the presumption that the
final account has been settled. Accordingly, it will confirm the release of the final
portion of retention for payment by the client. Given the contractual significance of
the certificate, it is particularly important that the original of the employers copy is
formally recorded as having been passed to the client.
20.7 Claims
Simplistically the effect may be described as delay, expense, and probably a
combination of both. There are no easy guidelines for the project manager as the
circumstances and validity of claims are invariably diffuse, resulting as much from
the basis of tender, corporate policies and attitudes of people within the team, as
from clearly defined problems encountered by the contractor. Hence the task for the
project manager arises well before any claim occurs, in that he must assess, and
continually observe and reassess, attitudes and personalities within the team, as well
as practical difficulties that occur. There is benefit to be gained, however, from
ensuring fundamental monitoring procedures are maintained, such as the checking of
information flow to the contractor, the timing of specialist subcontract orders, the
checking and interpretation of progress reports, and so on. By so doing, when claims
do arise, their validity should be easier to determine and evaluate.
There are three primary considerations for the project manager when a claim is
submitted:
l
To ascertain that the claim accords with the terms of the building contract.
The last of these three will invariably be the most problematic and the project
manager must come to his conclusion based on the evidence available and the
perception of motives and real concerns. However, I offer the following short
guidelines:
l
Strive to have the facts recorded immediately following the claim; they will
never subsequently be more clearly recalled.
Direct the consultants continuing attention to claims received; they are wont
to ignore the less attractive aspects of contract administration.
To the extent that the project manager or client may think it appropriate to control
aesthetics or the physical effect of tenants works upon the developer s structure, the
Agreement should oblige the tenant to submit appropriate drawings and
specifications to the client (but in practice the project manager or architect) for
approval prior to commencement of fitting out. (See also reference to specification
below.)
Where it is agreed that the client shall include in his building contract certain works
on behalf of and to be paid for by the tenant, the project manager should ensure that
they are clearly defined on drawings and specifications with reference to the agreed
cost (or basis of calculation). These are then attached to or specifically identified in
the Agreement.
Approval fees
Rent-free period
The project manager must clarify the date of commencement of any rent-free period.
Two principal alternatives are the shopfitting certificate date or the certificate of
practical completion for the building.
This is pertinent to retail developments and must be distinguished from any rent-free
period. With due regard for the extent of the tenants fitting-out works, the
Agreement states the period following issue of the shopfitting certificate within
which the tenant must commence trading. A proviso may be added that the tenant
shall not be so obliged unless the development is complete and open for public
trading and/or that specific external areas, such as car parks, roads and footpaths, are
available for public use.
Building defects
Landlord/tenant specification
Other than drawings which may be attached or referred to in the Agreement, the
developer s and tenants building responsibilities should be set out in specifications
attached to the Agreement, thus making the tenants works as obligatory as the
developer s. For ease of understanding, the respective obligations can be set out in a
combined format, of which a typical example is provided in Appendix B1.
For each development the project manager should instruct the consultants to produce
an appropriate standard specification, paying particular regard to the following:
l
Tenants handbook
Apart from the function of controlling a series of individual tenants activities, the
project manager must be aware of the need to encourage a positive tenant attitude
towards shopfitting and participation in the centre; also that there is information
beneficial to a tenant which will not necessarily be made known to him through
normal estates and legal channels. The project manager should therefore direct the
production of a tenants handbook, containing policy and guidance notes, intended
for distribution to all relevant personnel within the tenants organisation, his
designers and shopfitting contractors. The project manager cannot assume that
copies of the tenants obligations under the Agreement will have been distributed in
this same fashion in fact, it is extremely rare to find this degree of awareness in
tenant organisations. Hence reference to these obligations is both relevant and
necessary. The tenants handbook does not, however, carry the authority of a legal
document, unless it is specifically included in the Agreement for Lease. One result
of making the tenants handbook a legal document is that it will be scrutinised
closely by each tenants solicitor and may well extend the legal exchanges. In my
experience the informal method works just as well.
Presentation and content of the tenants handbook may alter according to
circumstance, but Appendix B2 repeats the Contents pages from a shopping centre
example showing the information customarily included in the UK.
As soon as practicable probably at the time lawyers are instructed to issue the draft
agreement for lease the project manager should notify the consultants and
contractors of each intended tenancy and supply information relevant to shopfitting.
In multi-tenanted buildings this can be done by the use of proformas, an example of
which is shown in Appendix B4.
Certain of the information may not be available when pro-formas are issued, in
which case the project manager should make subsequent periodic checks and reissue
as appropriate. The consultants may be directed to treat receipt of a pro-forma as
their instruction to issue design information to the tenants representative.
Control of shopfitters
Experience has shown that this is one of the most perplexing difficulties in finishing
a centre. Shopfitting contractors generally act entirely in accordance with selfinterest and often without regard for the developer s works, whether completed or
on-going. The project manager should not place reliance solely on the handbook but
should make specific arrangements for on-site checks, either by arrangement with
the main contractor, by instructing the clerk of works, or by direct monitoring.
Damage by shopfitters is not only aggravating, it is also usually very difficult to find
the culprit. The project manager must maintain a strict discipline on site, confining
each shopfitting contractor solely to the respective tenants demise, including
unfixed materials. Deliveries should be made only via the service ways, and vehicles
should be removed from site immediately unloading is completed. Where shopfronts
occur, the shopfitter should provide a dustproof hoarding on the shopfront line, and
only be permitted to step this forward for installation of the shopfront on prior notice
and agreement with the project manager and clients contractor.
Shopfitting completion
Cleaning
Building maintenance
Refuse collection
Security
Reception facilities
Postal deliveries
Landscape care.
23.1 Programme
Development bar chart and/or network
Prepared by the project manager with contributions from other team members
defining all critical or major events (eg site acquisition, planning permission,
settlement of pre-lettings, exchange of funding agreement) and including primary
elements from the consultants detailed design programme (eg building regulation
submission).
A network format can be particularly useful in the early stages of a project, because
it depicts the separate activities of site ownership, finance, pre-letting and design,
signifies the priorities as well as the linkage. It is vital for the project manager to
convey to both client and consultants the interdependence of events, and the risk
(particularly financial commitment) that can arise if the appropriate sequence is
ignored.
Produced by the consultants, usually led by the architect, and with a contribution
from the contractor if appointed. Usually in bar chart form, showing the timing and
relationship of information production between each consultant, and any design
liaison with specialist subcontractors.
Preparation of the Bills of Quantities is identified, followed by the period allowed
for tendering and any subsequent negotiation, and the clients decision to proceed.
Frequently, for the construction programme to proceed at optimum speed, it is
necessary to place orders in advance of the construction start date. Typically, this
might be for reinforcing or structural steel, or design and fabrication of external
cladding. Dates for tendering and placing orders for these elements can be shown on
the programme, serving to highlight the priority attention needed and the clients
capital commitment.
Normally presented as a bar chart and produced by the contractor; it may form part
of his formal tender. The project manager should seek the consultants
acknowledgment or otherwise that the programme is realistic. The contractor should
submit regular progress reports from which the project manager can transfer
information on to the programme so as to gain an overall impression of progress and
consider the significance of those items which vary from the forecast.
Schedules of information
l
Bills of Quantity . To aid production of the Bill the quantity surveyor should
circulate a schedule showing dates by which design information is required
from consultants to enable billing to take place.
Organisation name
Each individuals name, and
his project role, and
his position in organisation (eg partner), and
the address and telephone number of his office.
If appropriate, the team directory can be supplemented by marking those who are to
attend certain regular meetings, and those who are on the circulation list for minutes,
or other regular distributions. Can be included in the team directory.
23.6 Administration
Meetings
The project manager should identify the various meetings to be held regularly; their
purpose, frequency, personnel attendance and venue. Decide on the responsibilities
or chairmanship and taking of minutes for each respective meeting also the
circulation of minutes. The project manager should insist on minutes being issued
within 48 hours of each meeting.
Institute an orderly system of plan and specification filing (eg by drawing number)
and obtain from the architect and other consultants as necessary a copy of their
drawing schedule. For documents recording special approvals (eg planning
permission), or giving definition (eg compulsory purchase order or existing network
of site services), maintain specially labelled packets with copies of the relevant
documents and plans. (NB: It is also suggested that such packets be labelled not to
be removed from the office.)
Statutory approvals
The originals of all consents (eg planning permission) should be obtained from the
consultants and passed to the client or his solicitor with specific instruction that these
be placed with the title documents for the development.
Project records
Maintain and update at, say, quarterly intervals, a project record in the form shown
at Appendix C which provides a synopsis of the development for the project
manager and any principals to whom he must report, together with acting as a simple
check on the progress to date.
Provisional sums
Regularly review those items identified in the Bills of Quantity as provisional sums,
with the purpose of ensuring that tenders are obtained, reviewed against the
allowance, and instructions issued within the agreed programme.
The monitoring procedure is similar to that for provisional sums, but due time must
be allowed for tender evaluation and negotiation prior to contract instruction.
Appendix C3 gives the outline of a proforma which can be updated at, say, monthly
intervals by consultants and contractor and reported to the project manager.
Checklists
Probably the most familiar term of project management jargon, checklists perform a
useful function, and should be created to serve particular needs or aspects of control
(eg responsibilities under legal agreements, information flow to contractor).
23.8 Finance
Speculative development budget
Cost record
The project manager should maintain his own ledger in which is entered all
expenditure by reference to individual headings such as architects fees, tenant
reimbursements etc, together with a summary of gross and net expenditure.
Construction cost
Quantity surveyors and contractors are well versed in the practice of preparing
frequent reports identifying changes known and anticipated in the contract sum.
Usually these will be represented under headings such as Provisional Sums,
Nominated and Specialist Subcontractors, and Architects Instructions. It is usually
only necessary for the project manager and quantity surveyor to agree on the
presentation format; the principle is well understood. The project manager should
ensure a copy of each report is given to the respective consultants, as they are
effectively accountable for any extras (or savings) shown, including those springing
from a clients change of mind!
Development appraisal
At regular intervals, say quarterly, produce an appraisal and cost summary in the
form shown at Appendix C2, which identifies the clients approved budget, the
comparative anticipated totals of development cost at previous current quarters, and
the aggregate payment made to date. This enables the project manager to highlight
any increases or savings in cost and their impact on overall viability; also to check
that payments are in line with progress to date on the project.
Cash flow
Reading list
RECOMMENDED READING
Topping R and Cadman D (1995) Property Development (4th edn) Spon Press,
ISBN 0419202404.
Latham M (2002) Code of Practice for Project Management for Construction and
Development (3rd edn) Longman, ISBN 0582276802.
FURTHER READING
Appendices
Contents
1. Appendix A: Drafts of consultant appointments
2. Appendix B: Developer/tenant outline specification; Tenants handbook
contents; Letting memorandum; Shopfitting pro forma
3. Appendix C: Project record; Quarterly financial appraisal; Cash flow;
Nominated specialist status report
4. Appendix D: Health and Safety: Construction (Design and Management)
Regulations 1994 Project record addendum; Competency and resource
enquiries
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Appendix A:
Drafts of consultant appointments
A1 Architects appointment
A2 Quantity surveyors appointment
A3 Structural engineers appointment
A4 Mechanical and electrical services consultants appointment
PROJECT TITLE
APPENDIX A1
Architects appointment
1
Date
Project
Address/name of project; form of development; approximate content.
Client
Name and address.
Consultant
Name and address.
Service
4.1 1
The Consultants services shall include all those specified in Schedule 2 of the RIBAs
Standard Form of Agreement for the Appointment of an Architect (the edition current at the
date of this Agreement) as are necessary for the project.
4.1.2
Specialist sub-contractors and suppliers. The Consultant shall provide written recommendation
to the Client wherever the appointment of a specialist sub- contractor or supplier is proposed
and shall include advice as to the division of design and installation responsibilities between
the Consultant, specialist contractor and/or Main Contractor which will apply in each
instance.
4.1.3
Before commencing Work Stage E of the RIBA Standard Form of Agreement the Consultant
will prepare a programme identifying for each building element the number of drawings,
specifications, schedules or other information to be prepared, the timing of its issue and the
manpower resources that will be committed at each stage of the programme. The programme
shall also specify any Client decisions required, statutory approvals needed, and any other
significant issue which may affect information production. Where information for construction
is not included in a tender invitation the Consultant shall provide the tendering contractor(s)
a detailed Information Issue schedule specifying the dates this will be provided.
4.1.4
The consultant will incorporate and coordinate in the programme, and Information Issue
schedule, comparable information from other members of the consultant team, relevant to
their discipline.
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4.1.5
The consultant shall satisfy himself that each provisional and prime cost sum contained in the
Bills of Quantity prepared by the Quantity Surveyor, is adequate for the intended design.
4.1.6
Prior to tender action the Consultant shall provide the Client with a schedule of floor areas,
together with a set of drawings showing the principal internal dimensions of all leasable space.
4.1.7
The Consultant will advise, act for, and represent the Client in respect to any claim(s)
presented by the Contractor, or specialist sub-contractor(s).
4.1.8
Deleterious Materials:The Consultant Warrants that he has exercised, and will continue to exercise, reasonable skill
and care to see that, unless authorised by the Client in writing or, where such authorization
is given orally, confirmed by the Consultant to the Client in writing, none of the following has
been or will be specified by the Consultant for use in the construction of the Project:
a
asbestos products
naturally occurring aggregates for use in reinforced concrete which do not comply with
British Standard 882; 1983 and/or naturally occurring aggregates for use in concrete
which do not comply with British Standard 8110: 1985.
4.1.9
4.1.9.1
The Consultant will, prior to the payment of any part or the whole of the fee (Clause 6),
whether or not this Agreement has been executed, provide information to the Client to
demonstrate his competence and resources to comply with statutory requirements applicable
to the Consultants discipline.
4.1.9.2
During the continuance of this appointment, the Consultant will maintain the expertise and
resources needed to perform all statutory requirements applicable to the Consultants
discipline and to provide evidence of this upon request by the Client.
4.1.9.3
The Consultant will provide to the Planning Supervisor (if appointed) such information and
assistance as the Planning Supervisor may require to perform his duties according to statutory
requirements.
4.1.9.4
Without prejudice to the provisions of Clause 4.6, the Consultant will provide or procure any
relevant information required for the Health & Safety File, to be produced on or before the
certificate of practical completion for any relevant structure (as defined by the CDM
Regulations 1994).
4.1.10
Latent Defects:If requested by the Client, the Consultant shall provide information and assistance relevant to
the Consultants discipline, to enable the Client to make a proposal for, and meet the terms of,
a policy of insurance.
4.2
4.2.1
4.2.2
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If requested by the Client, the Consultant shall provide each and any Development Partner a
warranty in the form published by the British Property Federation. Each warranty to include
the following terms:
a
4.3
Letting
Provide any architectural drawings and specifications that may be required in connection with
the letting of the project. The Consultant will have regard for the requirements of the Property
Misdescriptions Act 1991.
4.4
Legal
Provide any architectural drawings, specifications or other information that may be required
for any legal documents.
4.5
4.5.1
Liaise with tenants and their consultants in resolving any requirements to be included in the
Clients building contract. Where the Client is to obtain reimbursement from a tenant for the
costs of any works, the Consultant shall provide appropriate certification.
4.5.2
Assist the Client in preparing a Tenants Handbook if appropriate and/or provide plans and
any other architectural information on which tenants and their Consultants may base fitting
out proposals. The Consultant shall also monitor the works to ensure they are implemented
according to approvals given on behalf of the Client.
4.6
ii
The information required by items (b) and (c) above are to be presented in the form of an
owners handbook.
The Consultant will advise and assist in the arranging of any maintenance contracts.
Copyright
The copyright in all drawings, reports, models, specifications, calculations and other documents
and information, prepared by or on behalf of the Consultant in connection with the project,
shall remain vested in the Consultant but, subject to the Consultant having received payment
of any fees due under this appointment, the Client shall have licence to copy and use such
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documents and to reproduce the designs and content of them for any purpose related to the
project following its completion including, but without limitation, the construction, completion,
maintenance, letting, promotion, advertisement, reinstatement, refurbishment and repair of
the project. Such licence shall enable the client, and its appointee, to copy and use the
documents for the extension of the project but such use shall not include a licence to reproduce
the designs contained in them for any extension of the project. The Consultant shall not be
liable for any use by the Client, or its appointee, of any of the documents for any purpose other
than that for which the same were prepared by or on behalf of the Client.
6
Fee
(To be calculated either;
a
As a fixed sum.)
Terms of payment
8.1
The period(s) prior to the Clients decision fully to proceed with the project
(The extent of commitment(s) to be stated having regard to:
a
Time.
8.2.1
The full fee terms as described in 6. above to apply and be paid as follows:
(Statement of basis on which fee to be paid up to Certificate of Practical Completion (eg. equal
monthly/quarterly tranches, or fixed proportion of fee for differing work stages).
8.2.2
Payment of fees in the manner prescribed, is conditional upon the Consultant adhering to his
commitments shown in the programme and Information Issue schedule.
8.2.3
5% of the Consultants fee to be paid immediately after issue of the Final Certificate.
If during the period(s) described in 8.(1) the sum(s) specified in that clause for work up to the
time at which suspension or abandonment occurs.
Paper 0143
9.2
If during the stage described in 8.(2) the measure of payment will be by agreement, and have
regard to work completed in relation to the programme and Information Issue schedule
(Clause 4.1.3).
10
11
Consultant team
11.1
The Consultant acknowledges and agrees that the other members of the Consultant Team shall
be:Planning Supervisor:
Structural Engineer:
Mechanical and Electrical Services Consultant (.... Duties):
Quantity Surveyor:
Project Manager:
and such other or further appointments as the Client shall from time to time consider
necessary.
12
Signature
In Witness whereof this agreement was executed as a Deed and delivered on the above date.
Executed on behalf of
the Architect
__________
__________
Witness
__________
__________
__________
Address
__________
__________
__________
__________
__________
__________
(NB: Same signature requirements as for Consultant)
(n.b for
partnership
only)
135
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12
Insert new clause in the appointments of those consultants who are to be novated to the
contractor.
Novation
12.1
The Consultant acknowledges and agrees that this Agreement is to be novated so that ..(Client
name) is replaced as Client by the Contractor~ when appointed. All other terms and conditions
of this Agreement shall continue in full force and effect. (Client name..) and (..Consultant
name) shall each be responsible to the other for obligations arising under this Agreement, up
to the time and date of Novation.
12.2
Subsequent to Novation it is agreed that the Consultant will inform (..Client name):
1
If the Consultant considers any aspect of the detailed or construction design to conflict
with the drawings and specifications previously approved by (..Client name..) and/or
a Development Partners, or with Planning Permission or Building Regulation approval.
If the Consultant considers the Contractors working methods or quality of workmanship to be not in accordance with the contract requirements or good practice.
If the Consultant considers the building is not suited for Practical Completion at the
time this is sought by the Contractor.
If the Consultant considers the snagging or defects lists prepared by the Contractor are
insufficient.
APPENDIX A2
Paper 0143
Date
Project
Address/name of Project; form of development; approximate content.
Client
Name and address.
Consultant
Name and address.
Service
4.1
The Consultants service will be in accordance with Scale (?) of the Professional Charges of
the Royal Institution of Chartered Surveyors. (Define whether this includes air-conditioning,
heating, ventilating and electrical services as provided in paragraph 2.2 of Scale 36.) The
Consultant will advise, act for, and represent the Client/ Project Manager in respect to any
claim(s) presented by the Contractor, or specialist sub-contractor(s).
4.1.2
4.1.3
4.1.3.1
The Consultant will, prior to the payment of any part or the whole of the fee Clause 6), whether
or not this Agreement has been executed, provide information to the Client to demonstrate his
competence and resources to comply with statutory requirements applicable to the Consultants
discipline.
4.1.3.2
During the continuance of this appointment, the Consultant will maintain the expertise and
resources needed to perform all statutory requirements, applicable to the Consultants
discipline and to provide evidence of this upon request by the Client.
4.1.3.3
The Consultant will provide to the Planning Supervisor (if appointed) such information and
assistance as the Planning Supervisor may require perform his duties according to statutory
requirements.
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4.1.3.4
The Consultant will include in the terms and conditions of any construction contract for a
structure (as defined by the CDM Regulations 1994), that the contractor will provide all
information for which he is responsible, that is required for the Healthy & Safety file, as a
precondition of the issue of a certificate of practical completion.
4.1.4
Latent Defects:If requested by the Client, the Consultant shall provide information and assistance relevant to
the Consultants discipline, to enable the Client to make a proposal for, and meet the terms of,
a policy of insurance.
4.2
4.2.1
Upon instruction from the Client the Consultant shall provide information, including Bills of
Quantity, required by a Development Associate, its agents and/or Consultants, and will liaise
with these parties according to the direction of the Client.
4.2.2
If requested by the Client, the Consultant shall provide each and any Development Partner a
warranty in the form published by the British Property Federation. Each warranty to include
the following terms:
4.3
Letting
Provide cost advice, area calculations or other related information that may be required in
connection with the letting of the project. The Consultant will have regard for the requirements
of the Property Misdescriptions Act 1991.
4.4
Legal
Provide Bills of Quantity, and any cost or measurement information that may be required for
any legal document.
4.5
4.6
As-built record drawings, operating and maintenance manuals, product guarantees. warranties.
test certificates and maintenance contracts
4.6.1
The appointments of the design consultants contain the following obligations upon them:
..provide two sets of all relevant materials, including that of any specialist sub-contractor,
within two months of practical completion (services to be at practical completion) including:a
ii
Paper 0143
4.6.2
The Consultant shall have regard to these requirements, and the need for warranties from all
specialist sub-contractors, in the procuring, vetting and completion of all contract works, and
liaise with other members of the Consultant Team.
4.7
Insurance
Advise the Client on the value of any insurances to be placed, particularly at the time of
practical completion.
4. 8
Capital Allowances
If requested by the Client, advise the value of any works qualifying for tax allowances.
4.9
Copyright
The copyright in all reports, specifications, Bills of Quantities, calculations and other
documents and information, prepared by or on behalf of the Consultant in connection with the
project, shall remain vested in the Consultant but, subject to the Consultant having received
payment of any fees due under this appointment, the Client shall have licence to copy and use
such documents and to reproduce the designs and content of them for any purpose related to
the project following its completion including, but without limitation, the construction,
completion, maintenance, letting, promotion, advertisement, reinstatement, refurbishment
and repair of the project. Such licence shall enable the client, and its appointee, to copy and
use the documents for the extension of the project but such use shall not include a licence to
reproduce the designs contained in them for any extension of the project. The Consultant shall
not be liable for any use by the Client, or its appointee, of any of the documents for any purpose
other than that for which the same were prepared by or on behalf of the Client.
Fee
To be calculated either;
a
As a fixed sum.)
139
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Paper 0143
Terms of Payment
8.1
The period(s) prior to the Clients decision fully to proceed with the Project
(The extent of commitment(s) to be stated having regard to:
a
Time.
8.2.1
The full fee terms as described in 6. above to apply and be paid as follows:
(Statement of basis on which fee to be paid up to Certificate of Practical Completion (eg. equal
monthly/quarterly tranches, or fixed proportion of fee for differing work stages).)
8.2.2
Payment of fees in the manner prescribed, is conditional upon the Consultant adhering to his
commitments described in the programme and Information Issue schedule (paragraph 4.2).
8.2.3
5% of the Consultants fee to be paid immediately after issue of the Final Certificate.
9.1
9.1.1
If during the period(s) described in 8.(1) the sum(s) specified in that clause for work up to the
time at which suspension or abandonment occurs.
9.1.2
If during the stage described in 8.(2) the measure of payment will be by agreement, and have
regard to the provisions of the RICS Scale of Charges.
10
10.1
The consultant shall maintain professional indemnity insurance in the amount of not less than
..for any one occurrence or series of occurrences arising out of any one event for a period of
..years from the date of practical completion of the building contract for the project, provided
always that such insurance is available at commercially reasonable rates. As and when it is
reasonably requested to do so by the Client, the Consultant shall produce for inspection,
documentary evidence that its professional indemnity insurance is being maintained.
10.2
(NB. This clause, and clause 4.2.2, may, if the Consultant wishes, be omitted from the final
form of this appointment, provided the Consultant confirms the same commitments to the
Client in a side letter at the date the appointment is signed.)
11
Paper 0143
Consultant Team
The Consultant acknowledges and agrees that the other members of the Consultant Team shall
be:
Planning Supervisor:
Architect:
Structural Engineer:
Mechanical and Electrical Services Consultant (.... Duties):
Project Manager:
and such other or further appointments as the Client shall from time to time consider
necessary.
12
Signature
In Witness whereof this agreement was executed as a Deed and delivered on the above date.
Executed on behalf of
the Quantity Surveyor
__________
__________
Witness
__________
__________
Executed on behalf of
the Client
__________
__________
__________
__________
__________
(NB: Same signature requirements as for Consultant)
141
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12
Insert new clause in the appointments of those consultants who are to be novated to the
contractor.
Novation
12.1
The Consultant acknowledges and agrees that this Agreement is to be novated so that ..(Client
name) is replaced as Client by the Contractor, when appointed. All other terms and conditions
of this Agreement shall continue in full force and effect. (Client name..) and (..Consultant
name) shall each be responsible to the other for obligations arising under this Agreement, up
to the time and date of Novation.
12.2
Subsequent to Novation it is agreed that the Consultant will inform (..Client name....):
1
If the Consultant considers any aspect of the detailed or construction design to conflict
with the drawings and specifications previously approved by (..Client name..) and/or
a Development Partners, or with Planning Permission or Building Regulation approval.
If the Consultant considers the building is not suited for Practical Completion at the
time this is sought by the Contractor.
If the Consultant considers the snagging or defects lists prepared by the Contractor are
insufficient.
APPENDIX A3
Paper 0143
Date
Project
Address/name of project; form of development; approximate content.
Client
Name and address.
Consultant
Name and address.
Service
4.1.1
The Consultants service will be in accordance with Agreement 3 of the ACE Conditions of
Engagement (current edition) including such additional services described in Clause 7., as
may be necessary. (Define whether service includes design of below ground drainage, and
checking of structural worthiness of designs by Architect and/or specialist sub-contractors;
also supervision of their on-site construction.)
4.1.2
4.1.3
The Consultant will advise, act for, and represent the Client/Project Manager in respect to any
claim or claims presented by the Contractor, or specialist sub-contractor(s), in so far as this
relates to the Consultants service and expertise.
4.1.4
Deleterious Materials:The Consultant Warrants that he has exercised, and will continue to exercise, reasonable skill
and care to see that, unless authorised by the Client in writing or, where such authorization
is given orally, confirmed by the Consultant to the Client in writing, none of the following has
been or will be specified by the Consultant for use in the construction of the Project:
a
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asbestos products
naturally occurring aggregates for use in reinforced concrete which do not comply with
British Standard 882; 1983 and/or naturally occurring aggregates for use in concrete
which do not comply with British Standard 8110: 1985.
4.1.5
4.1.5.1
The Consultant will, prior to the payment of any part or the whole of the fee (Clause 6),
whether or not this Agreement has been executed, provide information to the Client to
demonstrate his competence and resources to comply with statutory requirements applicable
to the Consultants discipline.
4.1.5.2
During the continuance of this appointment, the Consultant will maintain the expertise and
resources needed to perform all statutory requirements applicable to the Consultants
discipline and to provide evidence of this upon request by the Client.
4.1.5.3
The Consultant will provide to the Planning Supervisor (if appointed) such information and
assistance as the Planning Supervisor may require to perform his duties according to statutory
requirements.
4.1.5.4
Without prejudice to the provisions of Clause 4.6, the Consultant will provide or procure any
relevant information required for the Health & Safety File, to be produced on or before the
certificate of practical completion for any relevant structure (as defined by the CDM
Regulations 1994).
4.1.6
Latent Defects:If requested by the Client, the Consultant shall provide information and assistance relevant to
the Consultants discipline, to enable the Client to make a proposal for, and meet the terms of,
a policy of insurance.
4.2
4.2.1
Upon instruction from the Client the Consultant shall provide any drawings, specifications,
calculations or associated information required by a Development Partner, its agents and/or
Consultants, and will liaise with these parties according to the direction of the Client.
4.2.2
If required by the Client, the Consultant shall provide each and any Development Partner
warranty in the form published by the British Property Federation.
4.2.3
4. 3
Letting
Provide drawings, specifications or other structural engineering information that may be
required in connection with the letting of the project. The Consultant will have regard for the
requirements of the Property Misdescriptions Act 1991.
4.4
Paper 0143
Legal
Provide drawings, specifications or other structural information that may be required for any
legal documents.
4.5
4.5.2
Assist the Client in preparing a Tenants Handbook if appropriate, and/or provide drawings
and any other structural engineering information on which tenants and their Consultants may
base fitting out proposals. Comment upon and recommend approval of any tenant structural
proposals; also monitor the works to ensure they are implemented according to the approvals
given by or on behalf of the Client.
4.6
ii
Copyright
The copyright in all drawings, reports, models, specifications, calculations and other documents
and information, prepared by or on behalf of the Consultant in connection with the project,
shall remain vested in the Consultant but, subject to the Consultant having received payment
of any fees due under this appointment, the Client shall have licence to copy and use such
documents and to reproduce the designs and content of them for any purpose related to the
project following its completion including, but without limitation, the construction, completion
maintenance, letting, promotion, advertisement, reinstatement, refurbishment and repair of
the project. Such licence shall enable the client, and its appointee, to copy and use the
documents for the extension of the project but such use shall not include a licence to reproduce
the designs contained in them for any extension of the project. The Consultant shall not be
liable for any use by the Client, or its appointee, of any of the documents for any purpose other
than that for which the same were prepared by or on behalf of the Client.
145
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As a percentage of the initial contract sum or final account value (excluding the value
of any finishes of a fitting out character, eg carpets, canteen equipment) .)
As a fixed sum.)
Terms of payment
8.1
The period(s) prior to the Clients decision fully to proceed with the Project
(The extent of commitment(s) to be stated having regard to:
a
Time.
8.2.1
The full fee terms as described in 6. above to apply and be paid as follows:
Statement of basis on which fee to be paid up to Certificate of Practical Completion (eg. equal
monthly/quarterly tranches, or fixed proportion of fee for differing work stages).)
8.2.2
Payment of fees in the manner prescribed, is conditional upon the Consultant adhering to his
commitments shown in the programme and Information Issue schedule (para.4.1.2).
8.2.3
5% of the Consultants fee to be paid immediately after issue of the Final Certificate.
9.1.1
If during the period(s) described in 8.(1) the sum(s) specified in that clause for work up to the
time at which suspension or abandonment occurs, or some other specified figure.
9.1.2
If during the stage described in 8.(2) the measure of payment will be by agreement, and have
regard to the provisions of the ACE Agreement 3.
10
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11
Consultant Team
The Consultant acknowledges and agrees that the other members of the Consultant team shall
be:
Planning Supervisor:
Architect:
Quantity Surveyor:
Mechanical and Electrical Services Consultant (.... Duties):
Project Manager:
and such other or further appointments as the Client shall from time to time consider
necessary.
12
Signature
In Witness whereof this agreement was executed as a Deed and delivered on the above date.
Executed on behalf of
the Structural Engineer
__________
__________
Witness
__________
__________
Executed on behalf of
the Client
__________
__________
__________
__________
__________
(NB: Same signature requirements as for Consultant)
147
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12
Insert new clause in the appointments of those consultants who are to be novated to the
contractor.
Novation
12.1
The Consultant acknowledges and agrees that this Agreement is to be novated so that ..(Client
name) is replaced as Client by the Contractor, when appointed. All other terms and conditions
of this Agreement shall continue in full force and effect. (Client name..) and (..Consultant
name ) shall each be responsible to the other for obligations arising under this Agreement, up
to the time and date of Novation.
12.2
Subsequent to Novation it is agreed that the Consultant will inform (..Client name ....):
1
If the Consultant considers any aspect of the detailed or construction design to conflictwith
the drawings and specifications previously approved by (..Client name..) and/or a
Development Partners, or with Planning Permission or Building Regulation approval.
If the Consultant considers the building is not suited for Practical Completion at the time
this is sought by the Contractor.
If the Consultant considers the snagging or defects lists prepared by the Contractor are
insufficient.
APPENDIX A4
Paper 0143
Date
Project
Address/name of Project; form of development; approximate content.
Client
Name and address.
Consultant
Name and address.
Service
4.1.1
4.1.2
4.1.3
When the Consultant is satisfied practical completion of the services installation has been
achieved to a standard comparable to that required of the Architect under the building
contract, the Consultant shall certify accordingly to the Client and Architect.
4.1.4
The Consultant will advise, act for, and represent the Client in respect of any claim(s)
presented by the Contractor, or specialist sub-contractor(s), in so far as this relates to the
Consultants service and expertise.
Deleterious Materials:The Consultant Warrants that he has exercised, and will continue to exercise, reasonable skill
and care to see that, unless authorised by the Client in writing or, where such authorization
is given orally, confirmed by the Consultant to the Client in writing, none of the following has
been or will be specified by the Consultant for use in the construction of the Project:
149
150
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asbestos products
naturally occurring aggregates for use in reinforced concrete which do not comply with
British Standard 882; 1983 and/or naturally occurring aggregates for use in concrete
which do not comply with British Standard 8110: 1985.
During the continuance of this appointment, the Consultant will maintain the expertise and
resources needed to perform all statutory requirements applicable to the Consultants
discipline and to provide evidence of this upon request by the Client.
4.1.6.3
The Consultant will provide to the Planning Supervisor (if appointed) such information and
assistance as the Planning Supervisor may require to perform his duties according to statutory
requirements.
4.1.6.4
Without prejudice to the provisions of Clause 4.6, the Consultant will provide or procure any
relevant information required for the Health & Safety file, to be produced on or before the
certificate of practical completion for any relevant structure (as defined by the CDM
Regulations 1994).
4.1.7
Latent Defects:
If requested by the Client, the Consultant shall provide information and assistance relevant to
the Consultants discipline, to enable the Client to make a proposal for, and meet the terms of,
a policy of insurance.
4.2
4.2.1
Upon instruction from the Client the Consultant shall provide any drawings, specifications,
or other services information, required by a Development Partner, its agents and/or Consultants,
and will liaise with these parties according to the direction of the Client.
4.2.2
If required by the Client, the Consultant shall provide each and any Development Partner a
warranty in the form published by the British Property Federation.
4.2.3
Paper 0143
4. 3
Letting
4.3.1
4.4
Legal
Provide any drawings, specifications or other services information that may be required for
any legal documents.
4.5
4.5.1
Liaise with tenants and their Consultants in resolving any requirements to be included in the
Clients building contract.
4.5.2
Assist the Client in preparing a Tenants Handbook if appropriate, and/or provide drawings
and other services information on which tenants and their Consultants may prepare fitting out
proposals. Comment upon and recommend approval of any tenant services proposals; also
monitor the works to ensure they are implemented according to approvals given on behalf of
the Client.
4.6
4.6.1
The Consultant shall procure and pass to the Client, at practical completion, two sets of all
relevant material, including:
a
For each and all services elements, and to the extent not included in (b) above:i
ii
4.6.2
The information required by items (c) and (d) above are to be presented in the form of an
owners handbook.
4.6.3
The Consultant will advise and assist in the arranging of any maintenance contracts
Copyright
5.1
The copyright in all drawings, reports, models, specifications, calculations and other documents
and information, prepared by or on behalf of the Consultant in connection with the project,
shall remain vested in the Consultant but, subject to the Consultant having received payment
of any fees due under this appointment, the Client shall have licence to copy and use such
documents and to reproduce the designs and content of them for any purpose related to the
project following its completion including, but without limitation, the construction, completion,
maintenance, letting, promotion, advertisement, reinstatement, refurbishment and repair of
the project. Such licence shall enable the client, and its appointee, to copy and use the
documents for the extension of the project but such use shall not include a licence to reproduce
the designs contained in them for any extension of the project. The Consultant shall not be
151
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Paper 0143
liable for any use by the Client, or its appointee, of any of the documents for any purpose other
than that for which the same were prepared by or on behalf of the Client.
6
Fee
(State the agreed fee basis which shall be calculated according to one of the following.
a
In accordance with the provisions of Agreement 4A, but note whether this includes or
excludes any time charges, supplementary scales and QS scale rewards.
As a percentage of the initial contract sum or final account value (excluding the value
of any finishes of a fitting out character, eg carpets).
As a lump sum.)
7.1
Payment by the Client to be based on salary cost and other properly attributable expenses.
Terms of Payment
8.1
The period(s) prior to the Clients decision to fully proceed with the project.
(The extent of commitment(s) to be stated having regard to:
a
Time.
8.2.1
The full fee terms as described in 6. above to apply and be paid as follows:
(Statement of basis on which fee to be paid up to Certificate of Practical Completion (eg. equal
monthly/quarterly tranches, or fixed proportion of fee for differing work stages).)
8.2.2
Payment of fees in the manner prescribed, is conditional upon the Consultant adhering to his
commitments shown in the programme and Information Issue schedule (para.4.1.2).
8.2.3
5% of the Consultants fee to be paid immediately after issue of the Final Certificate.
9.1
If during the period(s) described in 8. (1) the sum(s) specified in that clause for work up to the
time at which suspension or abandonment occurs, or some other specified figure.
9.2
If during the stage described in 8.(2) the measure of payment will be by agreement, and have
regard to the provisions of the ACE Agreement 4A.
10
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11
Consultant team
The Consultant acknowledges and agrees that the other members of the Consultant team shall
be;
Planning Supervisor:
Architect:
Quantity surveyor:
Structural Engineer:
Project Manager:
and such other or further appointments as the Client shall from time to time consider
necessary.
12
Signature
In Witness whereof this agreement was executed as a Deed and delivered on the above date.
Executed on behalf of
the Architect
__________
__________
Witness
__________
__________
Executed on behalf of
the Client
__________
__________
__________
__________
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12.
Insert new clause in the appointments of those consultants who are to be novated to the
contractor.
Novation
12.1
The Consultant acknowledges and agrees that this Agreement is to be novated so that ..(Client
name) is replaced as Client by the Contractor, when appointed. All other terms and conditions
of this Agreement shall continue in full force and effect. (Client name..) and (..Consultant
name.........) shall each be responsible to the other for obligations arising under this Agreement,
up to the time and date of Novation.
12.2
Subsequent to Novation it is agreed that the Consultant will inform (..Client name....):
If the Consultant considers any aspect of the detailed or construction design to conflict with
the drawings and specifications previously approved by (..Client name..) and/or a Development
Partners, or with Planning Permission or Building Regulation approval.
If the Consultant considers the Contractors working methods or quality of workmanship to
be not in accordance with the contract requirements or good practice.
If the Consultant considers the building is not suited for Practical Completion at the time this
is sought by the Contractor.
If the Consultant considers the snagging or defects lists prepared by the Contractor are
insufficient.
Paper 0143
Appendix B
B1 Developer/tenant outline specification (example)
B2 Tenants handbook contents (example)
B3 Letting memorandum (example)
B4 Shopfitting proforma (example)
APPENDIX B1
TREATY CENTRE, HOUNSLOW
7.0
By tenant
7.01
Structure
Provide in-situ reinforced concrete columns,
beams and waffle slabs with non-loadbearing
walls.
7.02
Floors
Provide ground floor slab in 200 mm reinforced
concrete on a polythene damp-proof membrane
on hardcore, having a maximum loadbearing
capacity of 20 kN/m2, excluding any allowance
for the finish.
7.03
Ceiling
Provide plain finish concrete soffit.
7.04
Roofs
Provide all roofs and external finishes including
insulation to Building Regulation requirements.
7.05
Walls
Provide all enclosing walls to demise except
shopfront.
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By developer
7.5.1
Internal walls
Non-loadbearing walls are generally in 200 mm
thick blockwork. Wall thicknesses are indicated
on the information sheets relative to each unit
which may be obtained from the architect.
7.5.2
External walls
A combination of cavity walls in facing brickwork
and tiling, with dark red anodised aluminium
windows and louvres. Internal leaves of cavity
walls in light-weight concrete block.
By tenant
Postal services
By developer
7.12.3
7.12.4
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By tenant
157
158
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APPENDIX B1
TREATY CENTRE, HOUNSLOW
8.0 Specification of mechanical and electrical works
By developer
By tenant
8.04 Gas
Gas is supplied only to the larger stores.
8.05 Soil & waste drainage
Provide soil and waste drainage connections for:
2 WCs
2 Wash hand basins
By developer
8.07 Smoke extract
Provide smoke extract dampers at the rear of the
shop, which open with the advent of smoke/fire
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By tenant
159
160
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By developer
By tenant
By developer
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By tenant
8.16 Telephones
A telephone link will be provided between the
service deck and each shop unit excluding units
22, 23, 24 and 25 which have direct rear access
from the Douglas Road Service Yard.
Provide a main frame room at ground floor level
to receive incoming underground cables provided
by British Telecom.
Provide a network of empty cable trunking between
the main frame and each tenancy, for use by the
tenant.
8.17 Television aerials
Provide a UHF/VHF colour and monochrome
aerial array with coaxial down leads to each tenancy
terminating at the interface box adjacent to each
shop. Signal strength suitable for a single television
for each tenant.
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APPENDIX B1
SCHEDULE NO 1
Ventilation rates M3/s
Shop no
Toilet extract
General or corridor
1
2
3
4
5
0.1
0.1
0.1
0.1
0.1
0.283
0.188
0.190
0.153
0.365
6
* 7
8
9
10
0.1
0.039
0.1
0.1
0.152
0.479
11
12
13
14
15
0.1
0.1
0.1
0.1
0.1
0.192
0.192
0.269
0.269
0.115
16
17
18
19
20
22
23
24
25
0.1
0.1
0.1
0.1
0.311
0.148
0.148
0.262
*
*
*
*
*
No Service
No Service
No Service
0.1
0.1
0.1
0.1
0.031
0.191
0.300
0.300
*Ventilation rates given are supply volumes available from the developer systems. Tenants are required
to provide complete extract systems to handle the rates stated.
163
164
Paper 0143
APPENDIX B1
SCHEDULE NO 1
Ventilation rates M3/s
Shop no
Toilet extract
General or corridor
26
27
28
29
30
0.1
0.1
0.1
0.1
0.1
0.642
0.323
0.347
0.347
0.229
31
0.1
0.292
32
33
34
35 *
0.1
0.1
0.1
0.1
0.601
0.601
0.950
0.950
36
0.1
0.330
37
38
39
40
*Restaurant
0.1
0.1
0.1
0.1
0.290
0.290
0.498
0.640
3.6
*Ventilation rates given are supply volumes available from the developer systems. Tenants are required
to provide complete extract systems to handle the rates stated.
Paper 0143
APPENDIX B1
SCHEDULE NO 2
Condenser water flow rates and temperatures
Flow temp:
Return temp:
270C
390C max
Shop no
1
2
3
4
5
0.677
0.51
0.514
0.448
0.823
26
27
28
29
30
1.313
0.748
0.791
0.791
0.582
6
7 *
8 *
9
10
0.246
No service
No service
0.446
1.024
31
32
33
34
35
0.968
0.984
0.925
1.048
2.988
11
12
13
14
15
16
17
18
19
20 *
0.517
0.517
0.652
0.652
0.380
0.727
0.438
0.438
0.641
No service
36
37
38
39
40
Restaurant
0.62
0.602
0.602
1.058
1.31
2.76
22
23
24
25
0.232
0.516
0.708
0.708
* Heat rejection facility by tenant (eg air-cooled
roof-mounted refrigerant condenser) if required.
165
166
Paper 0143
APPENDIX B1
SCHEDULE NO 3
Model RP1012U
No. units: one
Free standing
Fitted with electric heater
Climate Control
Incremented type WH150
No. units: seven
Fitted with electric heater
Free standing
Temperature Limited
Newport Road
Sandown
Isle of Wight, PO36 9PH
Free standing.
Prestair President
Model 158WCL
No. units: seven
Fitted with electric heater
Model No TW120/1
No. units: one
Fitted with electric heater
Free standing
Model 50BF012
No. units: one
Free standing
Paper 0143
APPENDIX B1
SCHEDULE NO 4
Electrical supplies available
Proposed SEB
electrical supply
Proposed SEB
electrical supply
Shop No
KVA
Nature of
supply
Shop No
KVA
Nature of
supply
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
22
23
24
25
34
26
27
25
40
9
18
19
16
48
25
25
32
33
13
44
16
16
23
18
19
18
25
25
3 phase
3 phase
3 phase
3 phase
3 phase
1 phase
1 phase
1 phase
1 phase
3 phase
3 phase
3 phase
3 phase
3 phase
1 phase
3 phase
1 phase
1 phase
3 phase
1 phase
1 phase
1 phase
3 phase
3 phase
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Restaurant
43
34
39
39
36
24
40
40
40
100
34
30
30
34
46
70
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
3 phase
NB: Single phase and neutral supplies will be a declared voltage of 240 v 50 Hz.
Three phase and neutral supplies will be a declared voltage of 415v/240v 50 Hz.
The SEB incoming supplies will provide PME (ie TWC-S) earth terminals adjacent to the SEB
cutouts
The space requirements for the SEB metering equipment will be as follows:
1
A free space of 1000 mm minimum will be required in front of all SEB metering equipment for
maintenance and meter reading. All meter tails are to be provided by each tenant and these
should be PVC/PVC and a maximum length of 3000 mm.
167
168
Paper 0143
APPENDIX B1
SCHEDULE NO 5
Building management & integrated systems cost advice to tenants
Thorn EMI Protech Limited are the developers specialist installer for the Building Management
and Integrated Systems and to ensure compatibility with the developers systems the developer
strongly recommends tenants to appoint Thorn EMI Protech for the installation of electronics
monitoring and alarm systems within the units. For tenants guidance we have obtained the
following budgetary advice based on supply, installation, testing and commissioning in an average
sized unit, eg Shop Unit 12. However, we stress that tenants should obtain their own specific
quotation from Thorn EMI Protech as cost will vary according to individual requirements.
BUDGET COSTING
1
2 000
350
1 500
52
100
Paper 0143
APPENDIX B2
TENANTS HANDBOOK
TREATY CENTRE HOUNSLOW
CONTENTS
1.00
Introduction
1.01
1.02
1.03
1.04
1.05
1.06
Treaty centre
Parking and servicing
Entrances
Summary of finishes
Summary of M & E works
Centre logo
1
2
2
2
2
3
2.00
Centre management
2.01
2.02
2.03
2.04
Managing agents
Management offices
Car park opening and charges
Service charges
4
4
4
4
3.00
3.01
3.02
3.03
3.04
3.05
3.06
3.07
3.08
3.09
3.10
3.11
3.12
3.13
3.14
3.15
3.16
Tenants demise
Shopfront & shopfitting
Repair and maintenance
Alterations and additions
Loading and deliveries
Trading hours
Floor loading
Advertising
External fittings
Noise vibration and nuisance
Cooking
Refuse collection and disposal
Security fire alarms and public address system
Shopping trolleys
Heating and air conditioning
Management directions
5
5
5
5
5
5
6
6
6
6
6
6
7
7
7
7
4.00
Shopfitting design
4.01
4.02
4.03
4.03.1
4.04
4.04.1
4.04.2
4.04.3
4.04.4
Design concept
The demise
Shopfitting
General requirements
Shopfronts
Shop lines
Fascia
Open shopfronts
Closed shopfronts
8
8
8
8
8
8
8
9
9
169
170
Paper 0143
4.04.5
4.04.6
4.04.7
4.04.8
4.04.9
4.04.10
4.04.11
4.05
4.06
4.07
4.08
4.08.1
4.08.2
4.08.3
4.08.4
4.08.5
4.08.6
9
9
10
10
10
11
11
11
11
11
12
12
12
12
12
13
13
5.00
Shopfitting approval
14
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08
Developers drawings
Design meeting
Consultations
Planning permission
Outline proposals
Local authority & statutory authorities
Developers approval
Final details
14
14
14
14
14
15
15
16
6.00
Shopfitting regulations
17
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
Schedule of Condition
Pre-start site meeting
Tenants shopfitting contractor
Shopfitting Regulations
Hoardings
Alterations during works
Inspection
Completion
Insurance
Record drawings
17
17
17
17
19
20
20
20
20
20
7.00
7.01
7.02
7.03
7.04
7.05
7.05.1
7.05.2
7.06
7.07
7.08
21
21
21
21
21
21
22
22
22
22
22
Paper 0143
7.09
7.10
7.11
7.12
7.13
7.14
7.15
7.16
7.17
Painting woodwork
Windows and ventilators
Postal services
Sign to malls and service corridors
Goods lifts
Passenger lifts
Trolley lift
Escalators
Refuse
23
23
23
23
23
24
24
24
24
8.00
25
8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09
8.10
8.11
8.12
8.13
8.14
8.15
8.15.1
8.15.2
8.15.3
8.15.4
8.16
8.17
8.18
25
25
25
25
25
26
26
27
27
27
27
28
28
28
28
28
29
29
29
30
30
30
31/32
33
34
35
36
9.00
10.00
11.00
12.00
13.00
14.00
37
38
39/40
41/51
52
53
Insurances
List of statutory authorities
List of development team consultants
Floor plans & shop front recommendations
Diagram of M & E services to typical shop unit
Disclaimer clause
171
173
Paper 0143
APPENDIX B3
TREATY CENTRE, HOUNSLOW
LETTING MEMORANDUM
Re:
1
unit
Dated
Yes/No
Term of lease:
years from
Annual rent:
Rent reviews:
Paper 0143
APPENDIX B4
TREATY CENTRE, HOUNSLOW
SHOPFITTING PRO FORMA
Unit No:
Tenant:
(address)
Trading as:
Use:
Tenants representative:
Tel No:
Tel No:
Tel No:
Special instructions:
TAYMECH
TWC (site)
TAYWOOD ENGINEERING
175
Appendix C
C1
Project record
C2
Paper 0143
177
179
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180
181
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182
183
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185
187
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189
Paper 0143
Appendix D:
Health & Safety:
Construction (Design and Management) Regulations 1994
D1
Project record
D2
D3
D4
191
193
Paper 0143
A561
Taylor Woodrow Property Company Limited
APPENDIX D1
PROJECT RECORD
CONSTRUCTION (DESIGN & MANAGEMENT) REGULATIONS 1994
Regulation
PM File
CLIENTS AGENT
Name:
Address:
4(2)
Competency enquiry:-
Declaration:-
Issued:
Issued to HSE:
Declaration date:
Confirmed by HSE:
Copy to Company
Secretary:
Copy to Company
Secretary:
PLANNING SUPERVISOR
Name:
Address:
8(1)
9(1)
Competency and
resources enquiry:-
Issued:
Appointment
Draft issued:
Completed:
Reply approved:
by whom:
Original to
solicitor:
DESIGNERS
8(2)
9(2)
Name
Issued
By
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
PRINCIPAL CONTRACTOR(S)
8(3)
9(3)
Name
Issued
By
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
A646
Paper 0143
APPENDIX D1 (continued)
PROJECT RECORD
CONSTRUCTION (DESIGN & MANAGEMENT) REGULATIONS 1994
Regulation
PM File
PROJECT
7(1)
(date)
Copies to:
(date)
(Company Secretary)
11(1)
Completed
(date)
(Solicitor)
15(1)
15(4)
10
12(1)
Copies:
Number received:
Where PM copy held:
Others Passed to:
Date
1 ________________________________________
2 ________________________________________
3 ________________________________________
4 ________________________________________
5 ________________________________________
6 ________________________________________
194
195
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196
APPENDIX D2 (continued)
197
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APPENDIX D2 (continued)
Paper 0143
199
200
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APPENDIX D3 (continued)
Paper 0143
APPENDIX D3 (continued)
201
202
Paper 0143
APPENDIX D3 (continued)
Paper 0143
203
204
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APPENDIX D4 (continued)
Paper 0143
APPENDIX D4 (continued)
205
206
Paper 0143
APPENDIX D4 (continued)