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Development/Project Briefs Level 1 - Coggle Diagram
Development/Project Briefs Level 1
Feasibility Study
Definition
A feasibility study is used to analyse and assess the viability of a construction project
The goal is to understand if the project is feasible by assessing the practical aspects of the project and identifying potential strengths and weaknesses. The Inherent objectivity of the feasibility study allows stakeholders to make informed and qualified decisions about the project
The feasibility study should be structured in a way so the client can decide whether to proceed with the next stage
Key Sections (TELOS)
S
cheduling - This area outlines whether the project can be executed within a realistic timeline
O
perational - To effectively complete a project, there needs to be a plan of action in place. This area of the feasibility study assesses whether the business has the ability and appetite to execute the project
L
egal - Assessment to confirm the business will be able to meet the legal requirements of the project
E
conomic - Loss & profit considerations
T
echnical - This area assesses how the project will be delivered based on materials, labour, resources and any other practical requirements such as transport
Feasibility Stages
Part 1
Narrow all options, based on a high-level evaluation of each possible solution using a set of weighted, pre-defined criteria
The goal of this first phase is to narrow down the potential solutions to the best three to five potential options
The first part of the study assumes all possible solutions are available
Part 2
The second part takes the remaining options to undergo a very detailed, prescriptive evaluation against the clients requirements
The ultimate goal is to arrive at a solution that will deliver the best outcome, at the least cost, risk and producing the greatest set of benefits
Feasibility Study Report
Summary
Background
Design report detailing the various sketched options, site constraints and other design issues.
Advantages, disadvantages, risks, opportunities, high level programme and cost for each option
Stakeholder feedback/requirement - A letter of support from the relevant local planning authority in lieu of outline planning permission.
Assumptions
Site constraints and survey information
Recommendation
Options Appraisal
Option appraisals are undertaken following the completion of a feasibility study. The purpose is to assess a number of potential options before developing a concept design for the proposed options.
After assessing the feasibility study the client will decide which option the consultant team should develop. Ideally there will be no more than four options at this stage. If more options exist it may be necessary to carry out further high level studies before undertaking an option appraisal.
What would an options appraisal include?
An assessment of the risks of the options.
Consultations with the local authority and other statutory authorities, to assess possible planning permission requirements and other statutory requirements (such as the need for an environmental impact assessment for the options).
Initial cost appraisals of the options
Business Case/Development Appraisal
Development appraisal
Definition
- A Development Appraisal is a quantification of future costs and values and is conducted at a later stage than a Feasibility Study when the design is firmed up. Stage 2.
Main components
a) Construction costs
b) Section 106
c) Tax
d) Land acquisition
e) Stamp duty
f) Professional costs
g) Planning and finance costs
h) Agency fees (for selling or renting the place)
i) Profit (15 and 20% of the Gross Development Value (GDV))
Red Book
RICS Appraisal and Valuation Standards (The Red Book) contains mandatory rules, best practice guidance
and related commentary for all RICS members undertaking asset valuations (doesn't apply to fire valuations).
Capital Allowances - Capital allowances give you money back off the tax you have paid. There are discounts for tax such as M&E incentives, having a BREEAM rating, building in enterprise areas and land remediation.
Gross Development Value (GDV)
• It is the capital value the completed property is expected to be worth on the open market if sold/rented to a willing customer.
• The GDV is based on values available at the time the appraisal is carried out and the most efficient use of the site
Net Development Value
GDV less the purchaser's costs (legals, stamp duty etc)
Costing
Whole life costing
The costs of acquiring, operating, maintaining and disposing
a building
over its lifespan
Lifecycle Costing
Lifecycle Costing costs
individual elements
over a project's lifespan such as repair, maintenance, cleaning or decorating
Business Case
Definition
- A business case commences at the early stages of the project with an preliminary business case. This then develops through the stages in the project into a business case after the feasibility studies and options appraisals have been carried out.
The business case is the document that will be used to determine whether authority should be given for the preferred option to progress to the next stage. As such this document is prepared and owned by the client.
What would a business case include?
Confirmation the project is compatible with the client stated mission, objectives and vision.
Confirmation the project is likely to its business goals.
Confirmation the proposal is likely to deliver value for money.
Confirmation that appropriate advice has been obtained.
Confirmation that market conditions have been properly considered.
Identification of major risks and possible mitigation.
Identification of third party dependencies and necessary consultations.
Confirmation that feasibility studies have been completed and the appropriate options have been explored and the appropriate option identified.
Assessment of procurement options.
Schedules of critical dates - Planning committee meetings, key holiday dates, client board meetings, spending budget, competition coming to the market, grant entitlements
Project financial forecasting - Projected balance sheet, cash flor projection, project expenditure, income (or savings projections, projected profit and loss accounts
plans for the next stage
Project Brief
Definition
This formally defines the client requirements and objectives, in sufficient detail to enable the proposed project to be designed and specified.
A good brief ensures clarity for the design team, consultants and contractor and creates a sound foundation for the successful delivery of the construction element of the project
RIBA Stage 1 - Preparation and Brief
Who Prepares the project brief?
Typically, the client team will gather information and draft the strategic brief
The consultant team then review the brief to assist with its development, this is usually achieved by raising queries and identifying areas of missing information
Information included in a project brief
Introduction
Project Background and Business Case
Project Description
Statement of Objectives and Project requirements
Project constraints
Project structure
Budget and cost parameters
Design Quality
Programme and Procurement
Project risks
Value management
Steps to ensure brief is met throughout design & construction
Reviewing the design at the end of each RIBA Stage and checking against the brief for compliance
Reviewing the brief at key meetings and workshops, particularly design meetings
Capturing changes to the brief through the change control process
Regularly reviewing and updating the project execution plan to ensure suitable processes are in place
Room Data Sheets (RDS)
Room data sheets (RDS) provide a detailed description of the finishes, FF&E (Furniture, fixtures and equipment), acoustic, M&E requirements etc that will be required for each room or space. They provide detailed information to supplement the main project brief.
Strategic Brief (Client's Brief)
Introduction
Background & Outline Business case
Project Scope
Objectives and Requirements inc. Critical success factors / key performance indicators & Project deliverables
Project Structure - Organisation Chart, delivery team, Governance, approvals, communication routes and stakeholders.
Health and safety
Programme and Procurement - Expected requirements base on time, cost, quality and risk client requirements.
Constraints and Project Risks
Outline Programme
Developing a Project Brief
A - Appraisal - identify the client's needs, objectives, business case and constraints, preparation of feasibility studies, set up project steering group and KPIs, consider funding and procurement route
B - Design Brief - development of initial statement of requirements, identify organisation structure and consultants needed, studies of user requirements, site conditions, planning, design and cost to reach decisions
Project Execution plan PEP
Definition
The Project Execution Plan is the core document for the management of a project and defines the policies and procedures to be followed to achieve the Client's objectives.
It is a live document that enforces discipline and planning and forms a basis for:
• Sign off by the Client body at the end of the feasibility & strategy stages.
• An aid for funding.
• A modus operandum for the project team.
• An information and 'catch up' document for prospective contractors
Contents of a PEP?
• Project Summary & Key Information.
• Summary of Objectives -
Most Important
• Project Directory.
• Organisational structure.
• Communication structure -
Most Important
• Health & Safety procedures.
• Approvals and instructions.
• Change Control -
Most important
.
• Programmes.
• Progress and Reporting.
• Cost management.
• Design management.
• Risk Management.
• Contract / Procurement.
• Construction issues.
• Payment procedures.
• Completion / Handover
Statement of Need
Definition
This is the document created at very early stages describing the clients possible requirements. This is the client's very first attempt. This is part of defining the client's requirements.
Contents of a statement of need
A description of the business need that may help in a project
An assessment of how it will contribute to the corporate strategy
An analysis of options of development (new build/conversion etc)
A description of the Client
A description of the nature of the client's operations
Information about the current premises and possible future needs
Budget information
Programme dates
Potential future uses
Likely to be in a report from
Strategic Brief
Definition
This provides information about the project to allow the appointment of a consultant team. The strategic brief is then advised on by the consultant team to provide sufficient information for feasibility studies to be undertaken and options assess.
Who writes/owns the strategic brief?
Client team
How could you define the client's requirements?
Developing the statement of need and preliminary business case
Helps define scope of services required
Consulting with various stakeholders and supporters
Visit similar sites
Lessons learned
Feedback from other consultants
Feasibility and viability assessments
Client's objectives
Future proofing
Overall size and spatial requirements
Environmental conditions and external factors
Lifecycle costs
Budget
Environmental Standards, (CFSH and BREEAM)
Previous experience
Security
Inclusionary and disability access
Development Management 1st edition - RICS Guidance Note
Definition
The management of the development process, from the emergence of the initial development concept to the commencement of the tendering process for the construction of the works
Different Phases of development management
Phase 1 - Developer's initial concept
Commence specific market research to ascertain demand from potential investors or customers for the proposed development.
Identify potential sites.
Prepare rudimentary development appraisal that will comprise the design, cost and programme elements of the development.
Obtain approval from the developer's management board and other stakeholders/end user1 to proceed with the initial concept.
Abandon the concept of the development if the market research indicates that the development is unlikely to succeed.
Phase 2 Site acquisition strategy
Commence strategy for finding and acquiring a site of suitable size, budget and location.
Instruct land agents to find new sites and or investigate the possibility of acquiring existing sites for future development.
Undertake market research to ascertain the surrounding population mix of potential sites, its adjoining owners, adjoining uses, comparable rents, any interested parties and the potential for obtaining planning consent.
Carry out a development appraisal options analysis to select the most suitable site for development.
Select the site that best meets the development criteria, i.e. the preferred option.
Obtain the developer's approval to engage in negotiation with the existing landowner.
Commence negotiations with the landowner regarding a straightforward purchase transaction or commence negotiations of the development agreement.
Acquire or take out an 'option' to purchase the land and or existing buildings for development.
Confirm the development agreement with the landowners, investors, stakeholders and others if applicable at this point.
Obtain approval from the developer's management board and other stakeholders/end user to proceed.
Phase 3 - Outline appraisal
Consult with developer's in-house planner or planning consultant, or architects, on proposed configuration of development.
Where external consultants are to be used at this stage, agree terms of initial appointment.
Appoint the professional consultants to undertake development management services if appropriate.
Depending on the complexity and size of the proposed development, approach the planning authority, statutory consultees and interested parties for their initial views.
Draft sketch plans and elevations with the planning consultant and/or architects.
Draft outline development programme plan.
Carry out initial estimate of cost and consider potential procurement routes.
Prepare associated development risks for project risk register and management plan.
Unless already taken into consideration in a development agreement, undertake legal due diligence as soon as possible to ascertain if there are any covenants, lease agreements, etc. that will impact upon the proposed development.
Update and revise the development appraisal prepared in phase 1 for the proposed development including an assessment of the cost and availability of finance.
Where applicable, liaise with accountants to enable the minimisation of any unnecessary or unusual tax charges.
Proceed to next phase of development management having received approval from the developer's management board and other stakeholders.
Abort development if outline appraisal indicates that the developer's business requirements and objectives cannot be met.
Phase 4 - Outline planning permission
Pre-planning - Depending on the size and complexity of the development, developers will consider whether it is appropriate to approach the planning authority and statutory consultees for their initial view on the proposed development.
Consider if an outline or full application is appropriate for complex projects, particularly in urban areas. A planning authority may request similar information for either an outline or full application.
The developer will have to prepare the relevant documentation and supporting evidence to accompany the outline planning application.
Design - Progress the design development of the proposed scheme taking into account the developer's requirements, building regulations and applicable health and safety regulations. Consider the format of the presentation of the proposed development to the planning authorities, stakeholders and interested parties.
Procurement strategy - We recommend that this is considered and developed in further detail for the procurement of the developer's professional team, other consultants and the construction works. Where organisations are subject to European public procurement law, depending on the anticipated cost of the proposed development, they may have to advertise in the Official Journal of the European Union for the services of the professional team and the construction works at a later date.
Cost control - Update or undertake detailed cost planning as the design of the development is progressed.
Programme review - Update or undertake a further review of the master programme for the proposed development.
Risk management - Update or undertake a further review of the risk management plan prepared in phase 3.
Development appraisal - Update the development appraisal calculations for the proposed development including an assessment of the cost and availability of finance.
Agree and liaise with accountants and other specialist tax advisers to enable the minimisation of any unnecessary or unusual tax charges.
Agree proposals for arranging cost of finance with the relevant investors.
Obtain approval from the developer's management board and submit outline planning application to the planning authority.
Phase 5 - Full planning permission
Planning (this phase assumes that the developer was successful in obtaining outline planning permission) - Review the outline planning consent and the outstanding conditions/reserved matters (if any) that the developer will be required to satisfy in applying for full planning permission.
Design - Progress the design development of the proposed scheme so that it satisfies the developer's requirements, complies with building regulations and the applicable health and safety regulations.
Procurement strategy -We recommend that this is implemented according to the strategy agreed in phase 4 or revised to reflect any changes that have arisen as a result of obtaining outline planning consent.
Cost control - Update or undertake detailed cost planning as the design of the development is progressed.
Programme review - Update or undertake a further review of the master programme which takes into consideration the progress of the project.
Risk management - Update the plan to reflect any potential risks.
Development appraisal - Update the development appraisal if applicable.
Finalise proposals for arranging cost of finance with the relevant investors.
Obtain approval from the developer's management board and submit the full planning application to planning authority.