225 City Road, London EC1V 1JT: Mixed use development

Outline Development Management and Contractors Proposals.

Recital:

City Road Property Development Limited (CRPDL) has the Option to acquire the freehold site. In June 2016 CRPDL submitted and administered a planning application, associated section 106 negotiations and stage 1 & 2 GLA submissions. The PRS affordable housing contribution is by way of a single payment to London Borough of Hackney; there is no second stage affordable housing Alternative Use Valuation. The PRS (use) covenant is for 15years and can be broken with a single payment of £4.8m.

NDAs are required before ROL and Option agreement details can be released.

The Pre-Construction DM role is now complete

Construction D&B fixed price of £107.5m agreed with Mclaren Construction (Major Projects) Ltd ; CRPDL will be the contracting party with Mclaren and manage the PCSA period on behalf of the Fund / Freeholder

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1.0 Parties:

1.1: The Development Management will be undertaken CRPDL in conjunction with the appointed Project Team:

1. AHMM; Compliance Architect

2. AHMM; Principle Designer (CDM)

3. David Stillman Associates; Compliance Mechanical & Electrical Engineer

4. Arcadis (London & Manchester): Cost Management

5. Arcadis (London & Manchester); Employers Agent

6. Point 2 surveyors: ROL surveyors

7. Osborne Clarke; ROL legal

8. Osborne Clarke; Construction legal

9. Dp9: Section 106 payment management

All appointed consultants will have a duty of care to the fund/freeholder

1.2: Main Contractor: Mclaren Construction (Major Projects) Limited & [ Mclaren Construction Group Limited] the Guarantor

2. Pre-Construction

2.1: Planning Permission:

CRPDL obtained a decision notice on 05/01/2018 for a Full Planning Permission - CIL liable (application No: 2016/1814)

Permitted proposal:

Erection of part 22 storey, part 7 storey over basements building comprising of a fitness gym centre use at basement level (D2), flexible retail uses ta ground floor ( A1/A3/A4), office use at ground floor to sixth floor level (B1) and 100 Private Rent Sector residential units on the upper floors (C3); provision of communal terrace and gardens at the sixth floor and seventh floor level; provision of ancillary services and residential facilities and plant, cycle parking and associated works.

Judicial Review period 05/01/2018 to 16/02/2018; no challenge received by LB of Hackney (dp9 confirmed)

Dp9 will be retained by CRPDL and Mclaren to administer section 106 obligation payments and pre-construction planning condition discharges.

2.2 ROL

A comprehensive insurance policy is available for inception subject to entering NDA

A full ROL negotiation strategy has been agreed with Point 2 surveyors and Osborne Clarke part of which will be conducted under a conduct agreement with the insurers.

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3.0 Construction

3.1 Arcadis invited 4 contractors to submit PQQ submission during the spring of 2017 following which Mace and Mclaren were selected. Both contractors confirmed the planning submission, design development and specification information were sufficiently detailed (for example: MEP element taken to employer’s requirement stage & full site sub structure and soil’s investigation/ engineers report) to develop a D&B price. This competitive submission was further advanced by both contractors securing 100% subcontractor confirmed quotes, utility returns, Tfl proposals etc.

Arcadis and CRPDL selected McLaren’s D & B fixed price in the sum of £107.0m and a construction program of 40 months

3.2 CRPDL (Client) will contract with Mclaren Construction (Major Projects) Limited and [McLaren Construction Limited] as guarantor under a PCSA which will be developed over the next two weeks and will contain the following principle documents:

• Employers requirements

• Design & Build Price components

• Program & construction cashflow

• Contract terms or JCT contract with agreed amendments

• LADs’, insurances

• Project organigram of site and corporate personnel/directors

• Fee proposals to RIBA design stage 4

• Warranties and step in rights will be available to the funder/freeholder

• Contractor possession of the site from execution of the PCSA.

During the PCSA period the Design Consultants and Contractor will develop the project to RIBA Stage 4 (current project is between RIBA design stage 2 & 3) ensuring the specification is maintained in accordance with the outline already agreed. The PCSA will contractually bind Maclaren to enter into the agreed building contract detailed terms and conditions upon completing RIBA stage 4 design and, or no later than [14 weeks] from the PSCA date whichever is the sooner.

Fortnightly design meetings will be held attended by Client, Contractor and lead Designers.

AHMM will fulfil the Principle Designer role until the start on site when it will pass to the Contractor.

4. Development Management (RIBA Stage 5.0 to 6.0)

Following contractor’s appointment, a pre-start meeting will take place to familiarise the team with client /fund requirements, project constraints, risks and opportunities. All members of the Project Team & Contractor will be in attendance, including Fund

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representative. A Project Directory will be circulated and a template form of minutes and the pre-start meeting agenda will circulated before commencement of the works

Project Cost Reporting:

The following regular formal meetings will take place:

Monthly (during

contract)

Cost Report ▪ contract details ▪ basis of report ▪ executive summary including

− Certified Payment(s) tracker − Overall Project cash flow − approved budgets − anticipated final account − contingency trackers (expended,

committed, remaining) − movement during reporting period

▪ exclusions ▪ breakdown of costs including

− costs awaiting instruction − provisional sum breakdown − disputed variations

▪ change register (post contract)

Cost ManagerProject

Manager & Client

Interval Period Title/purpose Lead Attendees

Monthly Stages 3 & 4

Project Steering Group ▪ Issues relating to

the delivery of the project

▪ Project review including progress, programme and costs (tracker)

Client Representative / Project Manager/ Employers agent

Fund Project Manager Cost Manager Others by invitation

As required All stages

Design Team ▪ Review of design

issues

Lead Designer / Contractor/ Employers agent

Project Manager Designers CDMC Cost Manager Fund Contractor

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All meetings will:

Have a designated leader (Chair) who is responsible for all arrangements, including required attendees, time, securing venue and an agenda and informing all parties. Have points of action and record noted, clearly stating ‘action by who’ and ‘action by when’, distributed within two working days of the meeting. Review actions arising from the preceding meetings until these are completed / closed

out.

The Contractor will produce a report in advance of the monthly progress meeting covering the following: -

▪ executive summary ▪ client project brief ▪ consultant appointments ▪ surveys & investigations ▪ design process ▪ town planning ▪ procurement & construction ▪ programme & progress ▪ statutory requirements & third parties ▪ project controls ▪ decisions required ▪ future actions

The Client team will include AHMM in an Architectural Compliance role and David Stillman Associates (DSA) Mechanical services compliance. They will attend project meetings as and when required.

DSA will witness the commissioning of the M & E systems and will review O & M Manuals and Documents and advise upon final certification.

Monthly Contract

Site progress ▪ Contractor’s

progress report ▪ Information required ▪ Health & Safety

Project Manager/ Employers Agent

Client Project Manager Cost Manager Designers CDMC Contractor

Monthly or as required

Contract

Key subcontractor co-ordination ▪ Key sub-contractor’s

progress report ▪ Design issues ▪ Information required ▪ Health & Safety

Contractor/ Employers agent

Subcontractors as required Designers as required

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The PCSA & Development Management Proposals will be submitted to the Fund for approval and inclusion with the FDA.

5. Appendix:

• Residential outline specification

• Contractors proposed program

• Contractors Project Organogram

• Draft Development Management team

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