Frankham completing project for Optivo

Frankham Consultancy Group appointed by Optivo.

Providing Employer’s Agent, Cost Consultancy and Clerk of Works services for a 57 residential scheme comprising 23 affordable rent and 34 shared ownership units, located at the former De Burgh Gardens, Tadworth Surrey.

Frankham completing project for OptivoThe scheme forms part of a 229 mixed tenure luxury development of private and affordable dwellings.

Procured through a joint venture sales and development arrangement between Optivo and a London based private developer.

Frankham services at the pre-contract phase involved assisting the client in production of the project brief, and participation in the contract negotiation meetings leading to the production of the building contract documents.

Following contract execution, we have been providing cost consultancy and project administration services through, chairing monthly project review meetings, regular site visits to monitor the construction quality, monthly valuation assessments, interim certifications, and prompt responses to project queries.

To ensure effective resource management tailored to the client’s specific requirement, Frankham has assigned a regional director as client programme manager to oversee the project delivery at the strategic level.

The day to day Frankham project resource comprises a senior project manager with experience in cost consultancy, supported by an experienced Clerk of Works. The senior project manager lead the project delivery team by providing contract administration and cost consultancy services, to facilitate programme and cost control.

The Clerk of Works on the other hand conducts regular site inspections to monitor the quality of the construction works, and check compliance against the client brief and statutory regulations.

 

Challenge

Frankham completing project for OptivoA major project challenge at the pre-contract phase was how to strategically manage the financial risk associated with the developer’s request for deposit payment, ahead of formal land transfer.

The s-106 development agreement stipulated land transfer after golden brick certification at which point the transaction qualified for zero rated VAT.

Payment of the deposit at the time requested by the developer without corresponding transfer of legal title over the land to be occupied by the affordable units nevertheless would have exposed Optivo to a financial risk in the event the developer defaults in achieving timely completion of the golden brick works.

Frankham suggested the payment of the deposit (land price) in the form of a bond to be held by the developer’s solicitor, and released upon golden brick certification and completion of land transfer.

This arrangement provided the developer with the necessary assurance of available funds for the payment of the land price, and also assurance of Optivo receiving reimbursement should the developer fail to achieve the specified work completion date.

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