With the complexity and size of current new developments as well as their varying funding & delivery arrangements, our National Building Consulting team is undertaking an increasing number of Project Monitoring commissions for a variety of clients.

We are seeing a current trend of acquisitions of development property from international investors partnering with local developers – and more lately, from local property companies and superannuation funds. This is coupled with major corporates wanting anchor tenancies in new developments.

Project Monitoring is distinct from both Project Management and Construction Monitoring. Its primary role is to protect 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.

While we are traditionally engaged by an entity which enters into a commitment to lease or purchase a property upon completion, other entities (ie financial institutions, grant funders or end users) are seeing the benefits of our monitoring services which usually extend to independent, impartial & concise advice on the following:

• land & property acquisition matters
• statutory consents
• competency of the developer, its team and any project management systems
• financial appraisals
• development, finance, consultancy and construction agreements
• construction costs and programmes and
• design and construction quality

Our role is usually completed in two parts. Firstly, we would undertake an appraisal/audit of the project to identify those risks which would be relevant to our client and to report on these in an Initial Audit Report. Thereafter we traditionally monitor progress during the development process to ensure the developer’s duties under any agreements are discharged in a compliant & timely manner. We typically issue a monthly monitoring report which comments on all relevant commercial issues and contains a photographic illustration of physical progress.

New commercial office developments are typically marketed to achieve 6 Star Green Star and 5 star NABERS ratings. As NABERS is a performance based rating system the industry is, to a certain extent, still going through a learning curve in how to deal with the risks associated with acquiring property with an obligation for a particular rating which can’t be realised until perhaps two years after completion.

Our auditing and monitoring has identified risk weighted shortfalls or deficiencies in the process and procedures for modelling initial energy efficiency and tracking such against the design and construct process.

We’re also finding that typical agreement for lease specifications and performance requirements haven’t yet caught up with the green nature of the new developments. For example, traditional air conditioning design parameters provide for a comparatively low internal temperature range for a green building with low energy consumption targets. Where this is not checked and addressed the new owner may face the challenge of rising energy consumption and green ratings risks to avoid non lease performance and rent abatement.

Further, we too often find shortfalls or lack of procedures around operational readiness, adequate commissioning, handover and training of the building management staff. The sophisticated building management systems and green lease reporting requirements require well trained building managers.

As we tend to be more proactive than reactive in our role, we act as an early warning system for our client by anticipating potential issues and, by providing timely & accurate advice, we value add to the process by facilitating improvement in our client’s decision making competency.

Contact

Please contact us for our Project Management data card.

Our strategic, cost effective advice will best position your property for the future.

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