The Challenge
Our brief on behalf of a financial institute was to negotiate with a local authority the release of a financial bond and have the relevant site infrastructure taken in charge.
Due to concerns of the local authority on the incomplete nature of the development and site infrastructure, the council indicated their intention to call in the financial bond issued by the developer’s bank, in accordance with the planning permission.
On review of the development, it became evident that the council’s requirements extended beyond areas covered by the bond and included other areas not under the control of the developer.
In order to reach an agreement with the council on the release of the bond and have the relevant areas taken in charge, we had to obtain agreement from a number of stakeholders and agree costs to carry out the required remedial works.
Solution
Our first step was to meet with the council to fully understand their requirements. Following a detailed review of the site, we reached an agreement on the extent of works necessary to take the development in charge. In conjunction with the developer, we prepared a budget cost estimate for the bank and outlined the potential return of a significant portion of the financial bond, if the works were to proceed.
On approval of the budget, we prepared a formal agreement for signing by the council and issued a tender package for completion of the works, in order to obtain a fixed price for completion of same.
In order to obtain approval to complete works in areas not under the control of the developer, we presented to the Receiver in control of the other areas, a report outlining the extent of works necessary to have their area taken in charge. Following difficult negotiations we successfully obtained a financial contribution from this Receiver for works associated with their site.
On return of the tenders and completion of a tender analysis, we presented to the bank and developer our recommendations. On approval of same, we prepared contracts with a number of amendments to protect the Bank / developer and the works were instructed.
Outcome
Works were completed within budget and following submission of the relevant paperwork, the associated areas were taken in charge by the Local Authority and the financial bond payment was released back to the financial institute.