Rund’s Technical Due Diligence involved comprehensive research and analysis of Merrick Place to examine its physical characteristics and associated risks. This process provided an overview of the development and identified any gaps in the scheme’s risk profile.
An example of this in action is Rund’s robust scrutiny of the designs in line with Grainger’s stringent requirements. Through early collaboration, Rund was able to identify and challenge design elements that did not meet client requirements. Examples of this include the identification of alternative internal finishes, improvements to space provision within the floor layouts of the consented scheme to include operational facilities such as cleaning storage cupboards, and other requirements.
Once reviewed, Rund was able to provide a full set of comments to the design team to incorporate these design changes into the unit types and layouts, as well as ensure things like the wardrobe sizes, kitchen lengths, and integration of facilities were met. Through this work alone, Rund was able to reduce the number of non-compliant units significantly.
In a climate where contractor and sub-contractor insolvencies are becoming increasingly common, Rund has responded quickly to changes, protecting Grainger when the project was forced to change contractor and enter a new build contract. Rund’s Due Diligence work on the new build contract ensured that Grainger was made aware of the new risk profile of the project, and prevented exposure to these new risks. This is all whilst ensuring that a collaborative approach is taken with the developer to help achieve the optimal project outcome.
Changes to the build contract also impacted upon cashflow. Rund has worked with the developer to reforecast the cashflow and ensure Grainger has an accurate representation of when payments will need to be released. This will continue to be monitored during the construction period.
As the project has progressed, it has also changed from a single practical completion of all three blocks, to a phased completion. Rund has outlined to Grainger how this change impacts them from an operational and marketing perspective, as well as any planning implications.
Building Safety Act
As Merrick Place is classified as a transitional scheme under the Building Safety Act, this means that it doesn't have to go through the formal gateway procedures under the Act, but it does still require registration upon completion and prior to occupation. To facilitate this, Rund worked with the appointed developer / contractor to identify the process for registering the building as a high-rise residential structure with the Building Safety Regulator at completion, with part of this process
identifying and tracking all information provided to evidence the golden thread of information.
Next steps
As part of the next phase of Merrick Place, Rund will continue to support Grainger through construction, ensuring the Development Agreement is followed. Rund’s Clerk of Works services will also ensure that build quality is maintained and any construction issues are highlighted to both Grainger and SNG.
Early Due Diligence is a trend we are witnessing more often with clients looking for early identification, mitigation, and management of risks - crucial for ensuring smoother project delivery. Due Diligence has evolved from a checklist procedure to become a fundamental aspect of the process, significantly influencing decision making in site acquisitions and project progress.
Through Early Due Diligence, Rund is Building Stronger Outcomes Together. We are proud of our work together with clients to optimise the best outcomes, whatever the project challenge.
