Bank Monitoring

Expertly monitoring projects to help bridge the communication gap John Rowan and Partners www.jrp.co.uk

Project Monitoring We provide an expert assessment of development projects for lenders, owner occupiers, developers and tenants. We de-risk the project to provide successful outcomes and meet investment objectives on programme and budget.

We provide an independent and impartial assessment of the project as it progresses, thereby giving you a tool to manage risk and protect your interests.

We attend pre-construction meetings for each development in addition to regular on-site project meetings which allows us to gain insight into the project’s progress and any potential issues which may arise. Report on the site meetings are included within our monthly drawdown reports to the lender.

These services provide greater protection of our client’s interest, thereby improving the probability of delivering the right product at the right price and on time. We are able to make a valuable contribution to reducing lenders risk exposure, thereby improving the prospects of a successful completion of the development.

Our service will be tailored to reflect the requirements of the lender and reflect the type of development to be undertaken.

John Rowan and Partners is a people business, we live our values every day.

We are “people thinking about people”.

Meet the team Sean Tobin Equity Partner and Head of Public Sector Regeneration Sean has worked at John Rowan and Partners since 1998 and was made an Equity Partner in 2008. He is the partner in charge of our specialist public sector regeneration team, who work exclusively for local authorities and registered providers on programmes including stock condition surveys, capital works, contractor procurement and final accounts agreement.

Richard Barnard Senior Surveyor and Development Monitoring Richard joined John Rowan and Partners in 2013 and quickly became a key member of our team. His experience has been invaluable for our clients in his position as development monitor, where he has monitored over 140 projects totaling £156m in value. Richard works alongside banks and other financial institutions providing advice on construction projects ranging in value from £50k up to £7m.

William Thomas Graduate Building Surveyor William joined John Rowan and Partners in 2018 as a Graduate Building Surveyor after graduating from the University of Reading having achieved a 2:1 with honors. He is currently working within the public sector regeneration project monitoring team where he advises banks on the inherent risk in lending for new development, with focus on the pre-construction to completion of new build projects.

Our background At John Rowan and Partners, our function is not only to provide a full risk review of the project viability and continuous monitoring of the project through the currency of the development to the Lender, but also to assist the Developer in their performance to ensure a project is completed on time, in a safe environment, to required quality standards and within budget.

Our reports are tailored to comply with the Client’s requirements whilst covering all aspects of the construction.

We constantly strive to succeed and provide innovative solutions for our projects, delivering an effective professional service for our clients.

The Project Monitor is there to advise the Client on the risks associated with a development and protect the Client’s interests in the development as it proceeds.

RICS

We have enjoyed a good relationship with John Rowan and Partners since early 2015 and Richard Barnard, in particular, has provided an excellent level of support for signing off on the technical due diligence for the funding of our client projects.

We always get a prompt response to our enquiries which is key to our delivering a prompt service to our borrowers.”

Neil Moy RateSetter

www.jrp.co.uk

| INSIGHT

Issue 9 |

Why surveyors?

The principal reason for using a construction consultant to gap between the needs of the of the construction project. It doesn’t matter whether you are a new type of lender or a traditional bank – using an independent expert to monitor your construction project is sound business practice.

New lenders in the market While Brexit has caused some uncertainty in the market, the advantages of investing in the UK construction industry still remain. According to the Bank of England and De Montfort University (DMU), lending in 2016 by UK banks and building societies to private property companies increased by 1% to £135 billion, despite the Brexit vote.

Insight talks to John Rowan and Partners’ Sean Tobin The construction industry and the banking sector are two of the world’s oldest institutions, each playing a key part in the other’s growth. But with little common ground between them and a rise in new lending streams, Sean Tobin, head of John Rowan and Partners’ bank monitoring team, talks about the importance of monitoring projects to help bridge the communication gap and deliver the best for both worlds…

By their very nature, banks and lending organisations do not like to take risk; in contrast, construction projects are exposed to a wide variety of risk and uncertainty.

The list of issues which can befall a construction project is considerable. These range from challenging ground works, project variations, poor weather and force majeure events to planning restrictions and supply chain issues, to name just a few.

The construction industry is also incredibly complex and prone to disputes, cost overruns and

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We are also seeing a change

delays. For any lender without an in-depth knowledge of construction processes, this can be a daunting sector to hand and the professional practice of bank monitoring can help to limit your risk exposure and ensure that the administration of a loan is kept within the acceptable levels of risk.

projects. While historically UK banks and building societies have always been the dominant lenders, this position has recently diminished and now accounts for around 47% of loans, compared to around 60%,10 years ago.* Today, a broader range of lenders, such as online banks, insurance companies and debt funds, has emerged. These non-traditional lenders accounted for 20% of new lending in 2016, and look set to increase their market share in the coming years.

For one, most lenders don’t have adequate in-house expertise or the resource to be regularly on site carrying out project monitoring and reporting. And without forensic knowledge of construction processes, issues may be missed and loans put in jeopardy. At the same time it is often unwise to rely on the developer’s project manager as there is a So while the role of bank monitoring is complementary to the traditional project manager, it is advisable to make sure it is independent

Using a third party consultant means that you can immediately tap into extensive construction expertise and experience. For example, we have detailed knowledge of cost estimating, contractual matters, programme issues, project bank accounts and the common pitfalls for a lender.

All this experience means that we can help to keep a construction project on track, monitor all aspects of the

programme and identify any issues which could impact your ability to recover your debt.

Communicate well and quickly Bank monitoring is by no means a new service and it is a common requirement for many lending institutions – but there are ways it can be improved across the sector. All too often project monitoring and reporting is seen as a ‘one

bank monitoring should be the diverse practices, technical complexities and costs within the construction industry.

For us the role of the Bank Monitor is not one of an inspector, but should be seen as an opportunity to bring in a ‘problem solver’ who can work with all parties to get a construction project completed - maximising the return for all. Key to this is the ability to respond quickly and provide up to date information and solutions to mitigate issues – helping to keep the programme on track without delay from either side.

Our advice is simple if you project come and talk to us, we can provide you with the very best service and protection.

With over 30 years’ experience of managing projects across the world, we can ensure that you make an informed decision at every step. x *reference - PIA-Property-Data-Report-2017.PDF

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BANK MONITORING

KEY PROJECTS

RATESETTER We are appointed by RateSetter, the successful British peer-to-peer lending company formed in 2010, to perform bank monitoring roles on a selection of projects. These projects range from £300,000 upwards and are being carried out across the UK. We have offered advice to Ratesetter on a variety of projects advising on technical issues along with financial and construction. Example projects range from the conversions of properties to the demolition of

Client: RateSetter Sector: Residential Services: Quantity surveyor Project management Building surveying

an existing dwelling and the creation of new buildings in its place, to the construction of houses on a greenfield site.

Through feasibility reports, ongoing monthly reporting and constant communication, we have managed to advise Ratesetter where cost and time savings can be implemented on numerous projects.

We have enjoyed a good relationship with John Rowan and Partners since early 2015

Projects Include:

and Richard Barnard, in particular, has

Reading

provided an excellent level of support for

Conversion of two semi-detached properties in to six flats -

signing off on the technical due diligence for

Development Cost £300,000 - 6 month programme

the funding of our client projects. We always get a prompt response to our enquiries

Swindon

which is key to our delivering a prompt

Demolition of existing dwelling and construction of three

service to our borrowers.

bungalows - Development Cost £531,000 - 7 month programme

Neil Moy RateSetter

Demolition of existing dwelling and construction of two detached 4/5 bedroom houses - Development Cost £529,000 - 6 month programme.

Our relationship is ongoing and we’re proud to have overseen 39 new projects with RateSetter since inception in 2015.

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ABN-AMRO The project included the implementation of systems and processes to deliver global space efficiency and facilitate management programme.

A development programme for re-profiling the ABN AMRO’s global property asset portfolio (high street banking and offices) was created.

Our expertise in international projects and the managements of large numbers of concurrent projects drew parallels with ABN AMRO’s objectives. Working in house with the ABN AMRO’s property team,

LUXURY 5 BEDROOM HOME, MALT HILL Client: ABN-AMRO

The John Rowan and Partners bank monitoring team were appointed on the development of a high specification luxury five-bedroom detached house in Malt Hill.

Sector: Banking Services: Quantity surveyor Project management Information systems

we developed a project database to track live and historic work across all regions. The system captured cost data from construction projects budget reports, as well as other strategic cost management reports. The interfaces were developed to suit a range of users: from pivot graphs for high-level management to simple Excel import forms for users in

The CRED database developed by John

satellite branches.

Rowan and Partners is an invaluable tool in the benchmarking, budgeting

Analysis was then carried out in financial, procurement and

and management of our global capital

organisational fields to identify best practice and implement new global

expenditure programme. By inputting data

procedures. Benefits to ABN AMRO include:

into the database at the outset of a project,

Bringing consistency and accuracy in the way costs are captured

construction budgets are generated based

and categorised

on historical data for use as baseline costs

Reducing time spent looking for past project cost data

for the tender process. The database enables

Simple input/import forms (Excel cost estimate pro-forma) reduces

the budgets to be updated at completion,

data-capturing time

ensuring accurate future benchmarking and

Reproducing expert knowledge to create accurate estimates which

cost efficiencies.

can be substantiated

An effective interactive reporting system for both project and senior management level

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Basement incorporating a gym, cinema, sauna, steam room, wine cellar.

Detached garages.

Set in two acres of landscaped gardens in the village of Warfield, Berkshire.

worldwide and produced high-level and detailed estimates for capital

Features of the home included:

Mark Rickson Global Real Estates Facilities Manager ABN AMRO

Client: Private Sector: Residential Services: Quantity surveyor Project management

The development of fifty-three student bedrooms (sixtythree beds), two self-contained flats, communal kitchens and break out areas set in landscaped grounds on the outskirts of Taunton, Somerset.

The seventeen-month construction was completed on time and on budget to a very high specification.

Client: Private Sector: Residential

MK STADIUM AND RETAIL PARK Working with developers Inter MK Ltd, we provided project monitoring services to AVIVA Investors on the 21,813sqm (234,793ft2), £50m retail development incorporating a colonnade, ‘brise soleil’ and large sections of glazing and polished black lignacite blocks.

We identified anomalies in the planning submission enabling prehearing corrections, facilitated collaborative working between the developer and funder / purchaser, advised on risk and consultant appointments and identified additional site investigation requirements.

STUDENT ACCOMMODATION

Services: Project management

Client: Aviva Investors Sector: Retail Services: Quantity surveyor Planning advice Contract and procurement advice Value: £50m

RESTAURANT DEVELOPMENT The refurbishment and interior conversion of a new restaurant and bars over three floors on Piccadilly in central London.

The project which was completed on programme to a very high specification includes two restaurants, a wine bar, private dining areas, a car lift and a wine cellar.

www.jrp.co.uk

THE TREE HOUSE, POOLE John Rowan and Partners were appointed on the construction of an innovative and unique three bedroom detached Triple-A rated energy efficient property constructed by a local developer.

The project had a total development cost of £405,000+ and was completed on budget and programme.

Client: Local developer Sector: Residential Services: Project management

ROMILL CLOSE, SOUTHAMPTON John Rowan and Partners were appointed on a small development in Southampton consisting two terraced properties and two detached properties, constructed by a local developer.

The project had a total development cost of £645,000+ and was completed on budget and programme.

Client: Local developer Sector: Residential Services: Project management

STANDARD HOUSE, EDGEWARE John Rowan and Partners were appointed on the conversion of a mixeduse office and commercial structure to residential use, including the addition of three floors to produce nineteen one bedroom and studio

Client: Local developer

apartments.

Sector: Residential

The project had a total development cost of £1,9M and was completed

Services: Project management

under budget.

STIRLING ROAD, ACTON John Rowan and Partners were appointed on a development in Acton involving the demolition of the existing commercial laundry premises and the construction of a self-storage unit, comprising ground floor and

Client: Local developer

five upper floors with associated parking.

Sector: Residential

The project had a total development cost of £7.6M, the steel frame is

Services: Project management

currently in construction with completion scheduled in July 2020.

Our Services We are a truly multi-skilled business with expertise in all sectors of the property and construction industry, working in both the public and private sector.

Project Management

Quantity Surveying

Building Surveying

Site Inspector

John Rowan and Partners’ philosophy for successful project management is simple; it’s about minimum risk with maximum value. It is critical that any project runs smoothly.

John Rowan and Partners is one of the leading top 50 quantity surveying firms in the UK. We control and manage cost at all stages of a project from initial feasibility to final accounts.

Many different services fall into project management from the preparation of each individual case and the development of frameworks to straightforward procurement, design, delivery of construction and general operations. All services are very different and require a certain skill set to be successful.

Our cost managers work with private and public sector clients to optimise their investments. We strive for the best approach, supporting our clients’ aspirations in quality, value and sustainability, throughout a development’s lifecycle.

Our building surveying team is a ‘one stop shop’. From technical due diligence, dilapidation advice and party wall advice to intrusive fire risk assessments, this specialist team deliver for, and protect our clients’ assets.

There is no substitute for experience when it comes to assessing the quality of construction works. Each of our site inspectors have a broad range of practical experience in the industry and can spot substandard works.

Whether clients want advice on legal matters (or an expert witness), building repairs or comprehensive surveying expertise on multi-site projects, insurance reinstatement assessments or capital allowance guidance, we can help.

Site inspectors do more than check that quality is up to scratch. They’re your eyes and ears on site and will help you, and any consultant partners, identify and manage risks. If a contractor is having cash flow problems the monitor will notice a lack of material deliveries, inadequate resourcing or disgruntled supply chain partners. If works are overrunning, the monitor will flag it immediately. You’ll be able to put mitigating actions in place to ensure you only pay what’s fair and agreed, and the resulting works are of the right quality for you and/or your customers.

Our project management services include:

Planning management Employer’s agent Supply chain management Defects management Programme management KPI management

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Quantity surveying is our roots – in 1982 John Rowan and Partners began life as a quantity surveying firm – and from that we have grown to offer a range of cost services:

Cost management Cost planning Quality and cost auditing Feasibility studies Capital and taxation planning Insurance reinstatement costs Contract and procurement advice Risk management Value management Strategic cost advice

As well as being one of our primary business activities, building surveying is one of the core components of our project management capabilities. We work with our clients to devise progressive delivery solutions focused on bestvalue.

Our project monitoring services include: In response to client demands we formed The Building Forensic Partnership, a strategic alliance to deal with the rise of latent defects seen over the past few years.

Site inspectors Bank / fund monitors

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ABOUT OUR COMPANY To be a happy, thriving business, world class at valuing and engaging people in a fun and energetic environment, delivering the highest standards for our clients.

Our Core Purpose

Our Core Services BANK MONITORING PROJECT MANAGEMENT QUANTITY SURVEYING BUILDING SURVEYING SITE INSPECTOR SAFETY COMPLIANCE STRATEGIC ASSET MANAGEMENT

We are an award-winning, multi-disciplinary property and construction consultancy Since formation in January 1982, we have enjoyed excellent growth in the retail, leisure and residential sectors and became a Limited Liability Partnership on 18 April 2002.

Privately owned and financially stable, the business is owned by seven Equity Partners with no planned financial or structural changes and with no shareholders to satisfy. Our focus is 100% on our clients and helping them to achieve their objectives.

We are “people thinking about people” John Rowan and Partners is a people business, we live our values every day, we are “people thinking about people”. Our goal is to ensure that our people are supported, trained, engaged and rewarded so that they love working for us and the clients with whom we choose to work. We have a very low staff turnover due to our high levels of training and our desire to retain the knowledge, skills and experience that have proved so successful over the past 39 years.

Our expertise from working across sectors and delivering a range of services means we can draw on a variety of experience from our professionally qualified and experienced people, from different disciplines.

JOINT VENTURE SUPERVISOR www.jrp.co.uk

Our people are incredibly important to us and today we employ close to 100 people working in both the public and private sectors.

Having fun working hard, working hard at having fun

We innovate

We take pride

We care about people

Company Facts

7

Equity Partners

EMPLOYER’S AGENT

Our Values

39

Years in business

£9M+

Be all you can

Turnover

90+

We are Family

Employees

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SOLVING PROPERTY AND CONSTRUCTION CHALLENGES CONTACT US Head office Craven House 40 Uxbridge Road Ealing London W5 2BS

Tel: +44 (0)20 8567 6995

www.jrp.co.uk