Project
Technical Due Diligence report on behalf of a lender investing in the refurbishment of five storey office building near Tower Bridge in London. The services provided were in two parts.
The first part was to provide a Technical Due Diligence report on the asset and the feasibility of the refurbishment project. The second part was to provide loan monitoring surveyor services to monitor works progress and certify fund draw down applications.
Challenges
- Complex refurbishment proposals due to the constraints of the old building.
- Risk of contractor payment delays arising from the draw down payment process.
- Pre-lease of several floors imposed strict completion deadlines on the construction works.
Solution
The Technical Due Diligence survey provided the lender with a clear, understandable analysis of the risks in a technically complex project, and recommendations to mitigate the risks. Involvement in the monitoring of the project enabled us to ensure the recommendations were carried through into the project to mitigate the risks.
The key risk of contractor payment delays was addressed by ensuring that the information required at each draw down was precisely specified and the various parties involved agreed strict timescales for step in the certification process. This avoided any unnecessary delays.
