Surveyors and Property Consultants

Regeneration & Strategic Development


Developer Procurement, Delivery Vehicles

 

Physical development is the most significant media of change in the built environment and as such needs to be carefully procured, managed and delivered.  For project promoters the choice and formulation of relationships with development partners is critical to the potential for the success of that initiative.

 

Development selection should be undertaken in a strategic and legible manner and in many instances procurement rules, often at European level, impose stringent obligations on the promoter.  That said good practice demands that the process should be the most effective possible, as clearly the developer is such a fundamental part of the success of a project.  The most effective developer selection methodology should be identified at the outset.  That process should then be implemented and consistently applied throughout with a clear and defined comparison procedure used.  Whether the process is by means of direct appointment, multi-stage development competition or competitive dialogue the guiding principles of clarity and consistency remain at the forefront of any procurement exercise. 

 

We have undertaken many development procurement exercises in the past acting on behalf of both the project promoter in ensuring that the best possible outcome is secured, and also acting for developers by using our intimate knowledge of the process to ensure that they have the best prospects of success.

 

The relationship between the promoter and developer then needs to be established.  The roles and responsibilities then need to be allocated and the expectations identified.  How the relationship is then governed is critical.  There are many alternatives ranging from straightforward development and implementation agreements to partnerships, collaboration agreements and equity arrangements and to joint ventures and special purpose vehicles.  The terms of that agreement or relationship are critical. Too often both promoters and developers overlook the terms of the agreement or spend so long negotiating these through the legal process that the opportunity is lost.  We have put numerous agreements in place and believe that a structured approach to the formulation of their terms is a prerequisite to their successful conclusion.  A systematic approach identifying objectives, roles, responsibilities, key performance indicators, benchmarks and outcomes means that clear instructions can be given to solicitors and that the drafted agreement is then fit for purpose and meets the parties’ expectations.  Then working closely with the legal team ensures that the expectations are accurately translated into an effective legal agreement.

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