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Construction advice for charities Our Construction Team assists our charity clients with

2. Trading subsidiaries for development work

all aspects of construction procurement in order to

Where appropriate, we work with our charity clients to involve

ensure that their plans are met on time and on budget.

trading companies in development projects. Such companies are

We understand the imperatives for charities, in fulfilling

separate, independent entities owned by the charity which may

their charitable objectives, of ensuring achievement of commercial and reasonable terms from those with whom they do business. We also appreciate charities’ internal reporting requirements and can assist by providing risk reports, regular updates and by attending meetings (whether with trustees or the executive team). We work with charities, their professional consultants and contractors to ensure that their construction contracts are put in place in a timely and cost effective manner. The services we offer charity clients include:

have an important role to play in such projects. They may provide a useful focus for specialist expertise in relation to such projects and their involvement may have VAT consequences. We are experienced in liaising with VAT advisors in connection with such arrangements and in putting in place appropriate documentation between the charity and trading subsidiary. Once such structures are established we advise on the procurement route, building contract, consultant appointments and, where appropriate, ensuring collateral warranties are provided to the charity. 3. Estate management and maintenance programmes Our charity clients are often involved in building works to maintain and improve existing facilities as part of a wider rolling estate management and maintenance programme. With dedicated specialist knowledge and experience in the charity sector we can

1. Procuring new works

assist with streamlining a charity’s construction documents to

Starting a new project can seem like a daunting process, especially

ensure the charity is not ‘re-inventing the wheel’ and can benefit

if a charity has never had responsibility for procuring a building

from the management and administration savings from having

project before. We work with charities to ensure that their interests

continuity in contract terms.

are protected not only on their first scheme but ensuring, wherever possible, that documents can also be used on future building

4. Due diligence and reporting to trustees

projects to minimise costs and management time and provide

If a charity is acquiring a new site and substantial works were

continuity of terms.

undertaken in the 12 years prior to the acquisition, it is often

The types of documents we regularly advise on include:

prudent to have undertaken due diligence on the documentation used to appoint the contractor and design team to ensure the

u Building contracts – industry standard forms and preparing bespoke schedules of amendments

charity could pursue a claim if there were ever an issue with the

u Consultant appointments

preparing a report on key liabilities and any missing documents,

u Letters of intent

works. We can assist with obtaining copies of those contracts, checking appropriate insurances and assisting you with any documentation needed to transfer the benefit of those contracts

u Collateral warranties

to the charity.

u Novation agreements

We are often asked by our charity clients to provide a project report

u Performance bonds

on the risks and responsibilities in the construction documents for trustee meetings, the charity’s audit trail and ease of future

u Parent company guarantees

reference. These are often useful where instructing officers are

u Development agreements

not consultants and feel unsure in explaining the details of the

u Funding agreements

can also attend those meetings.

Construction Team Sheet.indd 1

construction documents to the board of trustees. If useful, we

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Your Dedicated Specialist Construction Team Julia Davenport-Cooper, Head of Construction, Partner Direct Tel: 01225 326783 Email: Stone King, 13 Queen Square, Bath, BA1 2HJ

Melanie Eycott, Construction Team, Associate Direct Tel: 01225 326741 Email: Stone King, 13 Queen Square, Bath, BA1 2HJ

Ashley Canavan, Construction Team, Solicitor Direct Tel: 01225 326770 Email: Stone King, 13 Queen Square, Bath, BA1 2HJ

Luke Exton, Construction Team, Solicitor Direct Tel: 01225 326788 Email: Stone King, 13 Queen Square, Bath, BA1 2HJ

Jack Farrar, Construction Team, Paralegal Direct Tel: 01225 326752 Email: Stone King, 13 Queen Square, Bath, BA1 2HJ

© Stone King LLP 09/2014

Construction Team Sheet.indd 2

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