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Development Funding - see Development M'App for other Development…
Development Funding - see Development M'App for other Development issues
[2. Is it a forward funding/forward purchase]
[8. Funding obligations]
9. Unconditionality and funding preconditions
4. Funding preconditions
1. Protection from Whom
1. The Developer
3. When is it released
1. Trigger for the release
[1. Practical completion]
[2. Making good defects certificate]
3. From other dates
[1. Practical completion plus x years]
[2. Making good defects certificate plus x years]
4. If no date is specified
[1. 6 years if signed]
[2. 12 years if sealed]
2. Pre-conditions to release
2. No claims outstanding
[1. Allegations]
[4. Proceedings]
[2. Details provided]
[3. Pre-action letters]
1. Delivery of quality protection documents
[Specify in notes what prevents release]
1. Type of development obligation
[1. Absolute covenant]
3. No/low strength
[Nothing]
[3. Good faith]
[1. Assisting to manage the construction]
[2. At the counterparty's cost]
[4. No developer obligation at all]
2. Endeavours/plus
[2. Reasonable endeavours]
[1. All reasonable]
[3. Best endeavours]
[4. Competent developer standard]
2. What the developer obligation covers
1. Building obligations
[4. Reasonable skill and care]
2. In accordance with
[1. The specification]
[3. Specify other requirements in notes]
2. Degree of compliance
[1. General]
[2. Strict]
1. In a good and workmanlike manner
[Should this be professionally and diligently?]
3. Materials to be used
[1. Just good quality materials]
[2. Good quality and suitable materials]
3. Prohibited/deleterious materials
[1. Generally known to be deleterious]
[3. Contravening any British standards]
[4. Contravening any European standards]
2. Contravening any good practice codes
[2. OVE ARUP]
[1. Building research establishment]
[4. Specify other codes in notes]
1 more item...
2. Comply with documents/processes
[2. Plans/specifications]
[3. Building contract/consultant appointments]
[4. British Construction Standards/codes of practice]
[Specify other in notes]
5. Title consents
[Rights of light]
[Party wall]
[Other title agreements]
1. Statutory Consents
[1. The main planning consent]
[3. Consents needed through construction]
[2. Building regulations]
[4. Specify others in notes]
5. Managing the team
[2. Consultants appointment]
1. Building contractor appointment
[1. Appoint on the Agreed Form]
2. Appoint on market terms
[1. Leave for later discussion]
2. Specify terms now
[1. Number of assignments]
[2. Levels of PI]
[3. Specify anything else in notes]
3. Sub-Contractor/Sub-Consultant appointment
[2. Procure the building contractor appoints on Agreed Form]
[1. Procure consultant appoints on Agreed Form]
4. Design
[1. Absolute obligation]
2. Reasonable endeavours to procure
[1. Competent design as standard]
[2. Reasonable skill and care standard]
3. Fitness for purpose warranty
[2. Yes]
[1. No]
3. Delivery/speed
4. Consultants who certify things
[2. Whoever certifies delays and compensation]
[1. Whoever certifies costs valuations]
3. Consultants who design things
[1. Architect/Employer's Agent]
[2. M&E]
[4. Structural Engineer]
[3. Quantity Surveyor]
[5. Building Contractor (design and build)]
6. Product guarantees/warranties suppliers
[1. Lifts]
[2. Loading docks]
[3. Solar panels]
[4. Specify others in notes]
6. Sub-Contractors/Sub-Consultants
[Sub-consultants]
Sub-contractors
[7. Structural steel]
[6. Roof]
[3. Foundations and floor slab]
[5. Piling]
[1. Cladding]
[4. M&E]
[2. Concrete]
[8. Specify other in notes]
2. (Main Building) Contractor
1. Control over their identity
[3. Picked from a pre-agreed list]
[2. Reasonable control/consent]
[1. Absolute control/consent]
3. Characteristics of the building contractor
[1. Appropriately experienced]
[4. Substantial]
[3. Reputable]
[2. Experienced in projects like this]
[5. Specify other in notes]
4. Release
[1. From doing the works]
[2. From liability for the works]
2. No control over their identity
[1. No control at all]
[2. Just appointed and notified]
5. Product guarantees/warranties
[1. Lifts]
[2. Loading docks]
[3. Specify other in notes]
7. Other consultants
[1. BREEAM advisor]
[2. Highways engineer]
[3. Planning consultant]
[4. Ecology consultant]
[5. Cladding consultant]
6. CDM
[1. Separate consultant]
[2. Building contractor responsibility]
7. Practical protection
1. Inspection and meetings
2. Meetings
1. Frequency
[1. Weekly]
[2. Monthly]
[3. Quarterly]
[4. Adhoc/on notice]
2. Process
[1. Advance notice]
[2. Advance agenda]
[3. Advance documentation]
[4. To coincide with site inspections]
1. Inspections
[2. Off site]
On site
[1. During daylight hours]
[3. Queries and assistance with what is occurring]
2. Opening up and testing
[1. When can this be done]
5. Value add concrete cascade
[2. Is the concrete the strength in the spec]
[1. Does it need to be wet tested]
[4. Was it used in the right conditions e.g. temperature, humidity]
[3. Was it set before the next step occurred?]
2. Process for the request/right
[5. Via a nominated Developer representative]
[3. In writing]
[1. If reasonably required]
[4. In writing with reasons]
[2. If required]
3. Consequences of an inspection
If works found to be ok
[Costs for the Tenant]
[Other implications?]
If works found not to be ok
[Remedial works]
[Tenant's costs]
[No extensions of time?]
4. If the inspection is refused
[Third party decision]
[Implication for subsequent certification]
2. Latent defects insurance
[1. Comfort that insurer has checked what it needed to check]
[2. But you will still need to prove a claim]
3. Protection at works completion
2. Process for works completion
[1. Advance notice]
[2. Right to comment/object]
[3. Consequences of comment/objection]
4. Completion deliverables
[Check they are being delivered]
1. Process for the lead into works completion
[1. Advance notice]
[2. Pre-completion checklist]
[3. Pre-completion deliverables check]
[4. Pre-completion inspection]
[5. Pre-completion inspection comments]
[6. Pre-completion inspection disputes]
3. Who signs off completion
[2. Developer sign-off]
[3. Counterparty sign-off]
[4. Disputes]
1. Project Professional sign-off
Type of professional
[1. Architect]
[2. Employer's Agent]
[3. Bespoke role for this project]
[4. Other]
Duty of care
[1. Warranty]
[2. Third party]
2. Protection for What
[2. Design Defects]
[1. Works Defects]
4. Protection through the procurement structure
1. Single point responsibility
[1. Design and build]
[2. Multi-point responsibility wrap]
2. Multi-point responsibility
[1. Construction management]
[3. Not design and build]
[5. Managed packaged solutions]
[4. Traditional contracting]
[2. Management contracting]
[6. Specify other options in notes]
5. Documentary protection
3. Types of document/warranties etc.
[1. Reliance letters or reports]
3. Product guarantees/warranties
2. Warranties or Third Party Rights
[1. Warranties]
[2. Third Party Rights]
4. Latent defects insurance (LDI)
1. What it covers
[1. Building damage]
[2. Mechanical & Electrical (M&E) damage]
[3. Loss of rent]
2. What it excludes
1. Typical exclusions
[1. Fair wear and tear]
[3. Inadequate maintenance]
[4. Overloading or abnormal use]
[5. Subsequent alterations (unless agreed)]
[2. Force majeure event]
2. Other exclusions
[1. Subsidence]
[2. Water leaks]
[3. Specify anything else in notes]
2. At works completion
[1. Draft certificates]
[3. Draft health and safety file]
[4. Draft reports]
3. Draft confirmations
[2. By the contractor]
[4. By the planners]
1. By the consultants
[Specify whom in notes above]
3. By the sub-contractors
[Specify whom in notes above]
1. Statutory certification
[4. EPC]
[5. BREEAM]
[1. Building regulations]
[2. Planning sign off]
[6. Specify other certification in notes]
3. Health and Safety file
1. Draft health and safety file
[1. At practical completion]
[2. Specify when in notes]
2. Complete health and safety file
3. Typical issues
[1. Assigning existing warranties]
[2. Calling for new warranties]
[3. Level of PI cover]
[4. Step-in rights]
[5. Individual warranties for parts of building]
6. Insurance
1. Contractor insurance
[2. When it is available]
[1. How much is it for]
3. What does it cover
[1. The design element]
[2. Specify anything else in notes]
2. Consultant insurance
[1. Aggregate claims]
[2. Each and every claim]
[4. Renewals]
3. How much insurance
[1. £3,000,000]
[2. £5,000,000]
[3. £10,000,000]
[4. £25,000,000]
[5. £50,000,000]
[6. Specify other amount in notes]
3. Latent Defects Insurance (LDI)
1. What it covers
[1. Building damage]
[2. Mechanical & Electrical (M&E) damage]
[3. Loss of rent]
2. What it excludes
1. Typical exclusions
[1. Fair wear and tear]
[3. Inadequate maintenance]
[4. Overloading or abnormal use]
[5. Subsequent alterations (unless agreed)]
[2. Force majeure event]
2. Other exclusions
[1. Subsidence]
[2. Water leaks]
[3. Specify anything else in notes]
4. Tenant's fit-out insurance
1. Cat A
[2. Insure separately]
1. Add Tenant's contractors to Landlord's insurance policy?
[1. To insure Tenant's contractor's causing damage to the building]
[2. To insure the Tenant's works]
[3. To insure the Tenant's contractor's public liability]
2. Cat B
[2. Insure separately]
3. Ready to use
[2. Insure separately]
6. Drawing down the funding
2. How often
[3. No limit of frequency]
2. Not more than
[1. Weekly]
[2. Monthly]
[3. Other - specify in notes]
1. Not less than
[1. Weekly]
[2. Monthly]
[3. Other - specify in notes]
1. How much
[3. No limits]
2. Not more than
[Specify maximum account in notes]
1. Not less than
[Specify minimum account in notes]
4. Who says drawing down is ok?
[3. Disputes go through a third party]
[1. The developer certifies]
[2. The Fund's surveyor certifies]
[4. Specify anybody else in notes]
3. Pre-agreed costs
[4. Developer's promote fee]
[3. Developer's promote costs]
[1. Costs incurred prior to signing]
[2. Costs incurred prior to unconditionality]
5. Development Costs
[8. VAT]
1. Developer's Costs
3. What is excluded
[1. Legal fees]
[4. Breach of contract]
[2. Agent's fees]
[3. In-house costs]
[5. Specify anything else in notes]
4. What is the accounting process
[3. No double counting]
[1. Supply receipts]
[2. Certification by surveyor]
4. The development account/ledger
[2. Joint hosted platform]
1. Who maintains it
[1. The developer]
[2. The fund]
3. What type of account
[1. Actual bank account]
[2. Ledger maintained by the fund]
1. What are they generally
[1. All costs relating to the development]
[2. All costs relating to design and construction]
[3. Specify anything else in notes]
2. What are they specifically
[4. Marketing and letting costs]
[5. Vacant possession?]
[6. Rights of light?]
1. Works costs
[2. Insurance costs]
3. Site preparation costs
[2. Demolition]
[3. Levelling and clearance]
[1. Remediation]
[4. Specify anything else in notes]
4. Site management costs
[3. Hoardings]
[1. Rates]
[2. Security]
[4. Maintenance (lighting/heating)]
[5. Third party claims]
[6. Specify anything else in notes]
5. Third party costs
[3. ROL payments]
[4. Party wall]
[2. Easements]
[1. Covenants]
[6. Defending claims]
[5. Enforcing rights to develop]
1. Building contract payments
[1. Building contract retention]
[2. Additional funding retention?]
3. Works fees
[Professional team]
[Bonds]
[Site fees]
2. Works consent
[Statutory regulators]
[Utilities]
2. Fund's Costs
3. Site acquisition
1. When are you acquiring the land
[1. Before any work is done]
[2. Before planning is granted]
[3. Before the development lease is in place]
[4. Before any actual construction work starts]
5. At some other point
[Specify other point in notes]
2. What are the costs of acquiring the land
[1. SDLT and land taxes]
[2. Survey type fees]
[3. Land and other registration fees]
4. Anything else
[Specify anything else in notes]
5. Exclusions
[Legals]
[Breaches]
[Agent's fees]
[In-house]
[Specifics]
4. Charge for interest/finance
2. Is there a charge for interest on costs
1. How much
[1. Specify fixed rate in notes]
[2. Specify fluctuating rate above base in notes]
2. When does it run from
[1. From before signing]
[4. From when incurred]
[2. From signing]
[3. From unconditionality]
[5. Specify other dates/combination in notes]
3. When does it stop running
[2. Practical Completion]
[1. When the last lease completes]
[3. When the profit payment is made or no longer due]
[4. Specify other date in notes]
1. Is there a charge for the fund allocating the finance
[1. How much]
[2. When does it run from]
[3. When does it stop running]
1. In-house costs
[1. Is it a percentage]
[2. Is it a fixed amount]
2. Professional fees
[1. Agent's fees]
[2. Legal fees]
[4. Specify other fees]
3. What are they based on
[1. Site price]
[2. Development costs]
[3. Development value[
[4. Specify anything else in notes]
3. How incurred
[4. Anything incurred i.e. no limit]
[3. Properly incurred]
[2. Reasonably and properly incurred]
[1. Reasonably incurred]
5. Pre-agreed Costs
[4. Developer's promote fee]
[3. Developer's promote costs]
[1. Costs incurred prior to signing]
[2. Costs incurred prior to unconditionality]
4. How much
[4. No limit on amount]
[3. Proper costs]
[2. Reasonable and proper costs]
[1. Reasonable costs]
6. Development Period
[1. When does it start]
[2. When does it end]
7. Development Income
[3. Capital receipts]
[4. Specify anything else in notes]
1. Site income
[1. Hoardings]
[2. Commercialisation]
[3. Specify anything else in notes]
2. Rent
[5. When is it due/credited/paid]
[6. When is it received]
[2. Is it paid direct to the Developer]
[3. Is it credited to the development account]
[1. Is it paid direct to the Fund]
4. Does it reduce interest charges
[1. Immediately]
[3. In aggregate rather than just for the quarter recevied]
2. Just for the quarter received
[2. Does surplus go to the Fund]
[3. Does surplus go to the development account]
[1. Does surplus go to the Developer]
3. Profit Payment
[3. What is the payment process]
4. What are the payment triggers
[6. Specify other triggers in notes]
2. Works Completion
[1. Practical Completion Certificate]
[2. Fund's Completion Certificate]
[3. Third Party to decide disputes]
[4. Rely on independent certifier]
3. Works Remedies
[1. Main warranties]
3. Sub-contractor warranties
[1. Carve out for insolvency]
[2. Retentions if not delivered]
2. Retentions if not delivered
[1. Specify by when in notes]
[2. Specify amount in notes]
2. Product guarantees
1. Compliance confirmations
[2. by Planning Authority]
[1. by Highways Officer]
[4. Specify anything else in notes]
3. by Professional Team
[1. All of the team]
[2. Specify them in notes, if not all]
[3. The building contractor]
[4. Specify anybody else in notes]
4. Works documents
[1. Health and Safety File]
[3. O&M manuals]
[4. Building regulation certificates]
[8. MPAN meter numbers]
[2. Commissioning certificates]
[5. BREEAM certificate]
[7. EPC certificate]
[6. CD Roms of the document]
5. Lease Completion
[1. Completion of the last lease]
[2. Incremental payments on incremental lease completions]
2. Is it paid on estimates
[1. Yes]
[2. No]
[3. Specify anything else in notes]
5. Are there any payment retentions
[4. Additional building contract retention]
[5. Other - specify in notes]
1. Warranties/Third Party Rights (works remedies)
[Contractor]
[Consultants]
[Sub-contractors]
2. Documents
[Health and safety file]
[EPC/LEED/BREEAM
[As-built drawings]
3. Consents
[Planning conditions/obligations]
[Building regulations]
1. How is the profit calculated
[1. Multiple of the rent]
[2. Gross development value]
[3. Specify anything else in notes]
Yields/Cap Rates (rounded)
[1. 2.5% cap rate of 40]
[2. 3% cap rate of 33.33]
[3. 3.5% cap rate of 28.60]
[4. 4% cap rate of 25]
[5. 4.5% cap rate of 22.20]
[6. 5% cap rate of 20]
[7. 5.5% cap rate of 18.20]
[8. 6% cap rate of 16.70]
[9. 8% cap rate of 12.50]
[10. 10% cap rate of 10]
4. The Developer's obligations
1. The Developer
3. When is it released
1. Trigger for the release
[1. Practical completion]
[2. Making good defects certificate]
3. From other dates
[1. Practical completion plus x years]
[2. Making good defects certificate plus x years]
4. If no date is specified
[1. 6 years if signed]
[2. 12 years if sealed]
2. Pre-conditions to release
2. No claims outstanding
[1. Allegations]
[4. Proceedings]
[2. Details provided]
[3. Pre-action letters]
1. Delivery of quality protection documents
[Specify in notes what prevents release]
1. Type of development obligation
[1. Absolute covenant]
3. No/low strength
[Nothing]
[3. Good faith]
[1. Assisting to manage the construction]
[2. At the counterparty's cost]
[4. No developer obligation at all]
2. Endeavours/plus
[2. Reasonable endeavours]
[1. All reasonable]
[3. Best endeavours]
[4. Competent developer standard]
2. What the developer obligation covers
1. Building obligations
[4. Reasonable skill and care]
2. In accordance with
[1. The specification]
[3. Specify other requirements in notes]
2. Degree of compliance
[1. General]
[2. Strict]
1. In a good and workmanlike manner
[Should this be professionally and diligently?]
3. Materials to be used
[1. Just good quality materials]
[2. Good quality and suitable materials]
3. Prohibited/deleterious materials
[1. Generally known to be deleterious]
[3. Contravening any British standards]
[4. Contravening any European standards]
2. Contravening any good practice codes
[2. OVE ARUP]
[1. Building research establishment]
[4. Specify other codes in notes]
3. British Council for Offices
[Good Practice in the selection of Construction Materials]
2. Comply with documents/processes
[2. Plans/specifications]
[3. Building contract/consultant appointments]
[4. British Construction Standards/codes of practice]
[Specify other in notes]
5. Title consents
[Rights of light]
[Party wall]
[Other title agreements]
1. Statutory Consents
[1. The main planning consent]
[3. Consents needed through construction]
[2. Building regulations]
[4. Specify others in notes]
5. Managing the team
[2. Consultants appointment]
1. Building contractor appointment
[1. Appoint on the Agreed Form]
2. Appoint on market terms
[1. Leave for later discussion]
2. Specify terms now
[1. Number of assignments]
[2. Levels of PI]
[3. Specify anything else in notes]
3. Sub-Contractor/Sub-Consultant appointment
[2. Procure the building contractor appoints on Agreed Form]
[1. Procure consultant appoints on Agreed Form]
4. Design
[1. Absolute obligation]
2. Reasonable endeavours to procure
[1. Competent design as standard]
[2. Reasonable skill and care standard]
3. Fitness for purpose warranty
[2. Yes]
[1. No]
3. Delivery/speed
6. Timing
[2. Longstop dates for events to occur]
1. Target dates for events to occur
Before unconditionality
[Insert other in notes above]
3. Conditions Precedent
[3. Building contract]
[4. Funding/viability]
[5. Other pre-lets]
7. Timing
[1. Target Dates]
[2. Longstop Dates]
[3. Can you extend the Target Date?]
[4. Can you extend the Longstop Date?]
6. Site infrastructure
2 more items...
2. Site issues
[1. Site acquisition]
[5. Demolition]
[6. Rights of light]
[7. Crane oversailing rights]
5 more items...
1. Planning consent
6 more items...
8. Other conditions precedent
[Specify other conditions precedent in notes]
After unconditionality
Before works start
[1. Vacant Possession]
[2. Rights of light]
[3. Site acquisition]
[4. Pre-commencement planning condition]
[5. Demolition]
[6. Quality Protection Documents]
[7. Any remaining conditions precedent?]
[8. Insert deal specific issues in notes]
After works start
[1. Quality Protection Documents]
[2. Milestone program events]
[3. Early access]
[4. Practical Completion]
3. Extensions of time
Trigger events
[Tenant's delay]
[Other events]
Construction/professional team termination
[Insolvency]
[Breach]
Force majeure
[Fire]
[Flood]
[War]
[Riot/civil unrest]
[Adverse weather]
[Labour shortages]
[Materials shortages]
[Infrastructure/fuel blockages]
Period of delay
[As certified]
[Dispute resolution]
[Concurrent period]
[Consecutive period]
Process
[1. Just notified by the Developer]
[2. Certified by the Consultant]
[3. Dispute resolution now]
[4. Dispute resolved later]
Control over events
[Beyond Landlord's control]
[Not reasonably foreseeable]
4. Non-extendable dates
[1. Longstop date for building]
[3. Specify other in notes above]
2. Calendar dates for delivery
4. Offices
[1. Before design stage for planning]
[2. Before planning consent]
[3. Before works start]
[4. After works start]
1. Industrials and logistics
[1. Before design stage for planning]
[2. Before planning consent]
[3. Before works start]
[4. After works start]
2. Retail
[1. Before design stage for planning]
[2. Before planning consent]
[3. Before works start]
[4. After works start]
3. Leisure
[1. Before design stage for planning]
[2. Before planning consent]
[3. Before works start]
[4. After works start]
5. Hotels
[1. Before design stage for planning]
[2. Before planning consent]
[3. Before works start]
[4. After works start]
6. Education
[1. Before design stage for planning]
[2. Before planning consent]
[3. Before works start]
[4. After works start]
7. Medical
[1. Before design stage for planning]
[2. Before planning consent]
[3. Before works start]
[4. After works start]
8. Other sectors
[1. Before design stage for planning]
[2. Before planning consent]
[3. Before works start]
[4. After works start]
4. Remedies
2. Remedies
[Specific performance]
Suing for loss
[Loss of profits]
[Economic loss]
[Special losses]
Ending the agreement
3. Termination
[Advance notice]
[Disputes]
[Consequences]
1 more item...
Pre-agreed losses
[Specify other in notes above]
LADs
[What the developer receives]
[What the developer must pay regardless]
5. What if the space is delivered late
Tenant not obliged to take space
[No consequences and either party can terminate]
Consequences
But does take space
[Rent free delayed]
[Pre-agreed losses/LAD's (paywall)]
[Other losses (paywall)]
**Other losses (paywall)
[(Legal) contractually proveable losses]
[LADS]
Tenant obliged to take space
[No consequences]
Consequences
[Pre-agreed losses/LADS (paywall)]
[Other losses]
[Rent free delayed]
1. Type of funding
[1. Are you funding the development costs]
2. Are you just buying the completed investment
If so, are these not relevant
[1. Profit payment]
[2. Development costs]
[3. Drawing down the funding]