CLIENT
Pigeon Investment Management
LOCATION
Market Deeping
CHALLENGE
We were instructed jointly by the Landlord and Tenant of the premises to assess the dilapidations liability at the 87,000sqft HQ office and warehouse/production site. Joint instructions were confirmed due to our in-depth knowledge of the demised premises and the Tenant’s fit-out, having acted for the Tenant in a Project Monitoring capacity during the design, development, construction and fitting-out of the premises in 2006-7. We had also previously undertaken a Building Cost Reinstatement Assessment of the premises as part of the Landlord’s investment portfolio valuation. Both parties wanted to know the level of dilapidations liability inherent in the site well in advance of lease termination.
SOLUTION
The dilapidations liability was assessed and the works competitively tendered 18months prior to lease end. 2 further rounds of tendering were undertaken 12 months later to account for cost variations in construction market. The preferred Contractor was identified in the period between offer and completion of the sale of the investment. An agreed funding arrangement was entered into between the vendor Landlord and the Tenant to allow the works to be completed under a JCT Contract in the name of the Landlord. The Contract was signed between the purchaser Landlord and the Contractor. The Landlord varied the works to re-purpose areas of the interior to better suit the current market requirements whilst also undertaking various improvement works.
RESULTS
We fulfilled the roles of Contract Administrator and CDM Principal Designer, monitoring the works through to completion, valuing the Contractors applications for payment and ensuring the works were completed on programme, to the required standards to present well to the current market requirements.
