Outling what advice to give my client in relation to the Legal problem which I have attached named ‘Coursework 3 Law’. Please the word document carefully. Outling what advice to give my client in relation to the Legal problem which I have attached named ‘Coursework 3 Law’. Please the word document carefully.
Coursework 3: Legal problem
Your client is a developer and the project you are working on for the client is the development of a corner site (ie fronting two roads) in West London. The work comprises demolition of an existing building and the construction of a four storey mixed use building. The ground floor is going to be let to a commercial tenant which is a well-known upmarket restaurant chain. The first floor is to be let to commercial tenants and will provide four office suites, and the remaining two floors are going to contain six luxury residential one and two bedroom flats which will also be let. There is space at the rear of the building and this is going to provide parking spaces for the flats and offices.
The developer is intending to sell the whole building to an investment group once the work is complete and all the offices and flats have been let.
The developer is funding the project with a commercial loan of £5.4 million available in tranches at pre-determined stages of the development from the Midwest Bank PLC.
The site acquisition cost is £1.2 million, the construction costs are estimated to be £5 million, although in the last year of construction it is envisaged that rental income from letting the ground floor restaurant will be available to offset the development cost. The eventual value of the building fully let is estimated to be £7.8 million.
The project is still in its planning stage. You, as project manager, have been asked to advise on the legal documentation that should be in place before work begins, assuming that a Design and Build procurement route is chosen.
Outline what advice you would give to your client in relation to:
1. Ensuring appropriate contractual relationships for the professional team and contractor are in place [You may use diagrams to help you present this answer]
2. How you might satisfy the Midwest’s requirements concerning maintaining a direct contractual link with the contractor and why
3. What protection could be offered to the eventual business tenants against the possibility of defects in the building work
4. The relative merits of using standard industry forms such as CIC forms, or bespoke forms of professional appointments for the architect and engineer. The bespoke forms would be drafted by the developer’s lawyers.
This piece of coursework represents 25% of the overall module mark. The work will be marked against the criteria listed in the assessment feedback form in Appendix A