Graham + Sibbald (G+S) were approached by ABC Property Investments Ltd (the Landlord) to provide advice on a tenant’s proposals to build an extension on their existing facility. The existing building is a 27,000 sq.ft manufacturing facility leased by Baxter Healthcare, a pharmaceutical manufacturer.
They wanted to install a new production line and submitted plans to extend the existing facility with a 10,000 sq.ft extension. This included a new envelope to house the production line, a power plant and water treatment facility.
APPROACH
G+S worked closely with ACB Property Investment Limited and their solicitors to provide advice on the Licence for Alterations documents submitted by Baxter Healthcare. This was a complex scheme that included a production line for a pharmaceutical product, a Combined Heat and Power Plant and a water treatment plant. There was a requirement to appoint a mechanical engineer, electrical engineer and structural engineer to review plans and specifications and to attend the tenant’s briefing meetings with the landlord. We coordinated design review meetings with the landlord’s team. We also provided advice to the tenant on how to procure a building, appoint a design team and to ensure that the building contracts and relevant warranties were in place.
The service G+S offered included:
- Initial inspection and photographic record of the existing structure
- Review of tenant’s proposals and confirm if they are sufficiently developed for a Licence for Alterations approval
- Attend tenants design team concept meetings to support the client through the tenant’s design process
- To provide advice to the client on the RIBA stages of design as the tenant develops their proposals.
- Monitoring the works on site.
- Coordination with client’s solicitors to agree procurement and contract approach for the tenant.
- Appointment of specialist engineers to review and monitor the works.
KEY CHALLENGES
Once the licence was approved the tenant appointed a contractor and proceeded with the works. It soon became apparent that works were progressing without a lot of the requirements required by the Licence for Alterations. There was no contract administrator, no formal contract or warranties and works were progressing without all the statutory consents being in place. We coordinated meetings between the tenant and the landlord to ensure compliance with the License for Alterations. These requests for compliance were ignored and works progressed on site resulting in our recommendation to have the client’s solicitors serve an injunction on the tenant to stop the works.
The landlord did not want to resort to legal means to stop the tenant works progressing but there was a concern that the works could damage the landlord’s asset. Stopping the works resulted in the formal appointment of a Contract Administrator, the production of a construction contract, relevant warranties to protect the Landlords asset and a formal process to monitor and value the works.
RESULTS
Once a contract administrator was appointed, they stopped the job and carried out a full review of the design, procurement route and project costs. The landlord’s reasonable requests, covered by the Licence for Alterations were adhered to allowing works to start on site with all relevant statutory approvals in place and a scheme that can progress to the satisfaction of the landlord.
KEY MESSAGE
Graham + Sibbald can use their knowledge and expertise to manage a scheme that required legal intervention to get it back on track and to protect their clients’ interests.
WHY G+S
If you are looking for a Building Surveying team who can help you maximise the value of your property and minimise your costs and liabilities, then we are the team to come to.
We work with a broad spectrum of clients, including leading names in the public and private sectors. We represent a wide spectrum of retained clients including Local Authorities, Inward Investors, Government Departments, Major Retailers and Industrialists, Licensed Trade Operators and Insurance Loss Adjusters amongst others.
Thanks to our expertise, experience and nationwide network of local offices we are able to deliver a professional, cost-effective service with a real personal touch. We place a high priority on expertise, good communications and building long-term client relationships based on trust.
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