An open evening for the

Edinburgh Residents for Statutory Notice Reform

Facebook group

7th December 2011

Alistair Drummond

Gordon Murdie

Kate Farrell

Philip Knight

Introductions

Peter Long

1. The meeting with Peter Long, interim manager of “Property and Conservation”

2. Management of projects – a reminder

3. Where is it still going wrong – case history

4. The legal perspective

5. Question Time - Kate Farrell in the chair

Gordon MurdieMD, Quantus QS

BBC Scotland Investigates“Scotland’s Property Scandal”

Expert QS

Peter Long

NOTALLOWED

OUT

Meeting with Peter Long; interim manager Property and Conservation

“A Checkpoint Group of external stakeholders specifically tasked with advising the Council on the development of the service model”

Building bridges or a bridge too far?

And now a swift reminder of the management services

--------- 1. Foreword

The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost

The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost

“MANAGEMENT AND PROCEDURES”

The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost

“MANAGEMENT AND PROCEDURES”

The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost

“MANAGEMENT AND PROCEDURES”

Fundamental services include

The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost

“MANAGEMENT AND PROCEDURES”

Also

The initial site survey should therefore define the extent of the work

Of course undermeasurement of required works is “problematic” – it is also wrong

Another spelling error apart, of course this is a requirement

The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost

“MANAGEMENT AND PROCEDURES”

And there’s more .....

“The only works legally allowed to be carried out are those noted on the statutory notice”

If more work is “necessary” then it is to be included in the TENDER – not months or years later

The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost

“MANAGEMENT AND PROCEDURES”

And then there is the all important issue of costs.

Is it that owners are to be NOTIFIED AND INFORMED ABOUT COST INCREASES?

Or kept in the dark until it is too late?

What happened to proper professional cost control and cost reporting – homeowners are paying a 15% fee for this service.

MAY 2008Contractor appointedProject Cost£59,077.37

AUGUST 2008In process of confirming a likely cost for the completed works

OCTOBER 2008Cost projection of final cost is completed. Now “In the region of £60,000”

NOVEMBER 2008

“ No further cost updates since our October 2008 newsletter”

NOVEMBER 2011

Final Invoice – at worst £66,000

NOVEMBER 2011

The total bill hits £107,000

DECEMBER 2008

The works are completed.

Case Study

MAY 2009Oh dear – Seems the plan is to put a scaffold up after the works are completed to render a chimney???. This is to cost (including more scaffolding) £6,000

Quotation

Projected Fi

nal Cost

FINAL A

CCOUNT0

20000400006000080000

100000120000

This case study is the subject of a formal complaint

CEC have inspected the fridge and larder.

Apparently I need £200 worth of

groceries and they’ll get them for me.

CEC phone from the shops and reassure me that the grocery bill is indeed as close

to £200 as doesn’t matter. All is well.

CEC get back from the shop and they have spent £350 of my money. They

want paid but won’t let me see the till

receipt

Case StudyMy Clients have good reason to query why their bill escalated . Obviously the construction industry is a bit more complex than a supermarket but simple sums apply to both. How easy is it to produce a till receipt for the

project (or Final Account as we call it) for comparison with the original costed shopping

list (or accepted tender) as we call it.CEC have invoiced my clients. They believe their invoice to be correct. CEC, send to me or let me see your substantiation & soon. My clients are rightly concerned about the escalated bill so let’s see how much they are being charged for a quoin, rybat, bit of lead or tin of beans.

And that’s not all. Whilst CEC are digging out their copies of the tender and Final Account, they should also think about:-

Was the selected tenderer on

the framework agreement at

the time of tender

Did the appointed contractor meet CEC’s selection criteria

Why did scaffolding have to go up

again when the project was finished

Are there any guarantees for the flat roofingWhy have the owners had to pay for

damage consequent on works

through an “ emergency notice”

And, how appalling is this? ..............

Why have the owners suffered consequential damage due to builders rubble blocking downpipes with subsequent freezing, cracking and (long reported) water ingress to two properties with resultant timber damage and ceilings coming down