MONITORING ANGCAO BUENAVENTURA ESPAÑOLA MASICAP PAKINGAN SITOY INTRODUCTION
Project Monitoring is distinct
from both project management and construction monitoring, and can be defined as: INTRODUCTION
“Protecting the Client’s interests by
identifying and advising on the risks associated with acquiring an interest in a development that is not under the Client’s direct control.” PROJECT MONITORING IS CARRIED OUT ON BEHALF OF A RANGE OF ALTERNATIVE CLIENT TYPES INCLUDING, FOR EXAMPLE: a funding institution, which will acquire the scheme as an investment upon completion; a tenant or purchaser which enters into a commitment to lease or purchase a property upon completion; a Bank or other development finance company where a loan matures at the end of the development period; grant funders; or private finance initiative funders and end users. TYPES OF PROJECT MONITORING Land and Property Acquisition Matters Statutory Compliance Competency of the Developer, its team and any proposed project management systems Financial appraisals Development, finance, consultancy and construction agreements Construction costs and programmes Design and construction quality TYPES OF PROJECT MONITORING Land and Property Acquisition Matters In this case the Project Monitor is appointed to advise on the Client’s long-term interests in the property. Typically, when assisting the Client’s solicitor, the Project Monitor is appointed to advise on the technical aspects of the Client’s report on title. Such advice may include a review of matters that affect the land title (boundaries, easements, covenants, etc.) as well as other neighbourly matters (party walls, rights to light, etc.). TYPES OF PROJECT MONITORING Statutory Compliance A building developed without planning permission or compliance with building regulations or other statutory controls will be worthless, require expensive remedial alterations or at best retrospective consent. Similarly, having consent but not complying with any related conditions may render the consent invalid and prohibit beneficial occupation. In either scenario, the detrimental impact on the value of the development would be significant. TYPES OF PROJECT MONITORING Competency of the Developer, its team and any proposed project management systems In this case the service required from the Project Monitor will vary in inverse proportion to the Client’s sector knowledge. Professional funders and financiers, for example, will have a good understanding how the industry operates and tend to need less advice from the Project Monitor. However many purchasers, tenants and public sector Clients have little sector knowledge and will rely on the Project Monitor to advise on the competency of the development team and the Developer’s project management systems. TYPES OF PROJECT MONITORING Financial appraisals Where appropriate the Project Monitor is advised to ask to review the Developer’s appraisal. This is often a sensitive area where the Developer may feel that it is being asked to divulge commercially sensitive information. It is important that the Client is made aware of this sensitivity by the Project Monitor TYPES OF PROJECT MONITORING Development, finance, consultancy and construction agreements The Project Monitor may be instructed to advise on technical aspects of development, sale or lease as well as consultancy and construction agreements. This will include commenting on how these agreements protect the Client’s interests TYPES OF PROJECT MONITORING Construction costs and programmes In all appointments the Project Monitor may ask to review the Developer’s cost plan and development programme. Once again this is often a sensitive area where the Developer may feel that it is being asked to divulge commercially sensitive information. It is important that the Client is made aware of this sensitivity by the Project Monitor. TYPES OF PROJECT MONITORING
Design and construction quality
Clients will often instruct the Project Monitor to review the design, specification and plans and monitor the works as they proceed. This is particularly common where a Client enters into an agreement to fund, purchase or lease a development that has yet to be built.