A Property Developer saw potential in a derelict retail premises with planning for 9 residential apartments and purchased the site, hoping to commence the construction works promptly. Due to the site’s location and bordering with Network Rail extensive negotiation was required to obtain various licences. Upon receiving tenders for construction works and a detailed report from a Quantity Surveyor, he realised that the investment would break even, which was a far from desirable outcome.
Key Achievements:
Negotiation with Third Parties
We provided valuable assistance for our client on this project, enabling a negotiation of Network Rail’s required fees for Scaffolding and Hoarding licences from £100,000 down to £15,000, without this achievement, the project would not have been possible. Added value to Client: £85,000.
Value Engineering
Following value engineering exercises during estimating, we were able to assess the client’s requirements and the overall design and make efficient changes to allow a reduction of the initial build costs from £2,015,000 to £1,472,000. Added value to Client: £543,000.
Redesign
During our assessments for the purpose of value engineering, we found that certain elements of the design were not required and used valuable space. By making these changes, we were able to provide the client an increase in sellable areas of circa 450 square feet and the ability to allow for 4 additional bedrooms across the development. Added value to Client: £225,000.
Development Information
No of Units: 9
GDV: £ 4.2 million
Construction costs: £ 1.5 million
