Project: Contractor Insolvency
RLF provided Employer’s Agent and Cost Management services on the major refurbishment and redevelopment of this existing 9 storey building at 2 Cornwall Street in Birmingham and part way through the project, we recognised the warning signs that the Contractor was in financial difficulties and would imminently be facing insolvency.
The works included:
- Removal of the existing façade and replacement with a modern curtain walling system
- Infill of upper floor areas and corners of existing slab to create additional floor area to all floors
- Horizontal (atrium infill and extension to corners at perimeter) and vertical extension (3 floors)
- Relocation of building WC cores
- Creation of roof garden terrace
- Creation of a new double height reception
- Internal strip out throughout and Cat.A refurbishment of 110,000 ft2 to Grade A developers specification
- Creation of amenity areas including Gym and cycle storage.
The key challenge was to administer the termination of the contract and protect the client’s commercial position, whilst providing construction management services to procure and complete the remaining works packages and maintain the completion date for the client and their future tenants.
- Timely and accurate contract administration throughout and during the contract termination.
- Negotiation and direct procurement with various sub-contractors.
- Contract administration of the various required sub-contracts.
- Coordination of warranty status and procurement to ensure warranties are provided/maintained.
- Accurate cost reporting and cost to complete analysis to inform client budgeting and cashflow.
- Facilitation of early access fit-out requirements to maintain target occupancy date of the fist tenancy.
- Preparation of the commentary and Procurement Report for the Bondsman which satisfied the bondsman that all processes were carried out correctly resulting in the full payment to the client.
- The works were delivered within budget despite the very challenging nature of the project and the logistical obstacles that needed to be overcome.
“When it became apparent that our contractor was going insolvent during a critical time in the project, RLF were proactive to the warning signs. We worked together with RLF to ensure that the necessary action was taken to safeguard our position contractually and financially. At the same time, we worked together to get the project back on track and procure the remaining packages to completion. RLF are easy to work with and forthcoming in their advice which ultimately led to a successful outcome. We have a longstanding relationship with RLF and I would not hesitate to recommend them”.
Alex Edwards, Head of Asset Consultancy, Bruntwood Estates
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