Description
Scenario
Your client, a major UK pension fund, is looking to speculatively develop an out-of-town retail complex on a brownfield site. The site was acquired two years ago with outline planning consent, following favourable market conditions, resulting in two national chains signing pre-let agreement. As such, your client now wishes to move forward with the scheme.
The overall development will comprise of the following retail units:
• 1 x 3000m2 unit, which has been pre-let to a national toy store
• 2 x 900m2 units
• 2 x 700m2 units
• 1 x drive-through type restaurant, which has been pre-let to a coffee shop franchisee
• Along with associated external works
All buildings on the site were cleared prior to the pension funds acquisition. The site is close to a local school and is accessed from a main highway.
The budget to cover the total development cost, inclusive of construction works, external works, statutory and professional fees is estimated to be £15 million. The completion date is critical given the pre-let agreements stipulate handover for fit out must occur within twelve months. If this is not achieved, the agreements are likely to be terminated.
Task
Prepare a report to the client recommending the most appropriate procurement route and form of contract for the development. Your report should contain the following points:
• a critical analysis the most appropriate procurement route. Your analysis should include a brief review of the other two main routes as a way of discounting them.
• a critical analysis of the most suitable form of contract
• reasoned justifications for your recommendations
Reference list
You should include a reference list with a minimum of five separate relevant and appropriate sources that you have written about and cited within your work.
A bibliography of uncited sources is not required.
Further information to support you with this assignment is available within the study materials for this module on the UCEM VLE. If you have any questions about this assignment, please contact your Module Tutor or Module Leader via the VLE.
