Where there is a third party to a development, it requires a person to ensure that those third parties interests are safeguarded, and otherwise undetected risks mitigated as far and soon as possible.
In such instances, Development Monitoring (or Client Representation) is offered to clients where the work or project is being undertaken by a third party. For example, on behalf of an investor or occupier who will take ownership/possession of a building being constructed by a developer, or a funding institution who is financing the project or lending a sum to enable the asset to be purchased upon completion of the works, or a tenant who is taking a leasehold interest in the building upon completion.
In such circumstances, although there is no direct relationship with the developer, it is essential that the eventual user of the premises obtains the investment they expected, and that sufficient ‘safeguards’ are in place should this not occur. This service typically involves:
Establishing the client’s requirements
Development Audit on such items as the specifications, drawings, budget costs/cash-flows etc to advise on quality of the building, material selection/design detailing, future maintenance issues, procurement strategy, risk and contingencies
Contractual Audit of all contractual documents such as financial or lease agreements, construction contracts, consultant’s engagements etc to advise on procurement strategies, contractual risk and future liabilities.
Development Monitoring, involving attendance to PCG meetings as the client representative and at critical construction times, review of progress claims and agreeing any client-led variations etc.
Handover – snagging of the works, taking possession of as-built drawings, warranties, maintenance manuals and consents.
As experts in this field, we have contributed and co-authored the Development Monitoring Guidance Note
for Australia and New Zealand issued by the RICS.