Brief History of our Construction Management Service.
As the recession began to ease and opportunity’s for investors became apparent, Lawlor Burns decided to form a bespoke Construction Management department to assist investors to take financial positions in either one off projects or a portfolio that is being disposed of by one of the major institutions.
Lawlor Burns project delivery.
- We provide due diligence, including a financial appraisal that gives the current values, break up values and eventual sales values of the project along with an outline roadmap to achieve same.
- Legal, Title and all contractual matters such as easements, rights of way, wayleaves, restrictive covenants.
- Full review of all statutory consents and identify any compliance issues that prevent the future sale or leasing of the development.
- Full due diligence and professionally produced cost plan for either new build or the rehabilitation of a development with unfinished building works.
- A full project plan for the delivery of the development, including any statuary issues and identifying all costs associated with completing the developments up to the point of sale.
In summary the team implements the roadmap – project plan and begins the process of de-risking the development along with enhancing the value of same, up to and beyond the expected returns.
Case study – current Construction Management Project.
In December 2015 Lawlor Burns were appointed to an unfinished development called Drummin Village in Nenagh Co. Tipperary.
This project consisted of 145 units at various stages of construction within an overall development of circa 300-unit planning consent.
On Closing the Lawlor Burns Team immediately deployed as follows.
- A full detailed survey of every unit and all site services was carried out along with a unit by unit detailed cost plan of the works required to bring same to a saleable level of finish.
As part of this process L&B reengaged the original Architects and civil- structural engineers, this insured that the certificate of compliance required by the legal team could be completed and made good for contract.
- An immediate clean-up of the development including engagement with the resident’s association and a full overhaul of the estates appearance and landscaping.
- The preparation of 4 show houses fully furnished with options and a full market launch plan with a local auctioneer.
- In our survey we found breaches in planning compliance particularly in the site services, by engagement with Tipperary CoCo we agreed a full site resolution plan, including the agreement of a development bond at a fraction of the original value required to carry out the development.
This meant that our legal team received letters of release from TCC that allowed the units to go to contract.
- We re-established the developments registration under the HomeBond scheme and through very detailed engagement with the HomeBond agents we are now selling the units with the benefit of an 8 year HomeBond guarantee. (This is very unique for a development abandoned 8 years ago.)
- The Developers team prepared a full sales launch in May 2016 and have, and all of the phase one units released have been sold.
- Based on these sales the L&B team set up a full Construction Management mobilization and the Sygma team are handling the following.
- Sales office coordination of purchaser’s specifications, (The units are sold with fit out such as kitchens and flooring)
- Full costing of suppliers and subcontractors required to carry out the works, including all warranties, at cost + an agreed management fee, this gives the investor cost certainty and sight on the profit that will be achieved from the unit’s sales, with no danger of contractors claims for additional costs etc.
- Handover and snagging of the units to the purchasers along with a defects liability period for them once they move in.
In Summary, 5 months after the L&B deployment all potential risks and costs have been identified and 4 purchasers have closed and taken possession, with 25 units currently being finished to the purchaser individual specifications.
L&B are now engaged with another international investor under the same terms as outlined above and have been appointed to
- 2 projects of 40 unfinished units. We are on site in one location and at the project scoping stage for the other project.
- A new build with planning permission for 40 units,
- A property portfolio disposal combining of unfinished units a residentially zoned site that should achieve planning permission of circa 250 units and existing tenanted commercial units.