Commonhold is receiving a lot of attention due to the recent Law Commission paper on resurrecting this process. This is part of a long (and some would say overdue) reform of the law concerning leasehold properties and in particular flats. Commonhold is not new and has been around since 2002.
Construction work is risky business, with accidents, injuries and property damage all liable to happen on a site. As a builder, the hazardous nature of your job brings with it a need for a comprehensive insurance policy to cover the financial impact of any incidents or claims. Issues can pop
A collection of three office buildings along Bristol’s waterfront have been sold in a deal worth £27.75 million. Legal & General’s UK Property Fund purchased the Quayside Bristol properties from DAS and ERGO. This deal follows the recent acquisition of the Iron self-storage portfolio, its landmark self-storage deal as the
No matter how carefully you drive or how much attention you pay, the risk of you being involved in a car accident is highly probable due to the increased number of road users. If you have been injured in a car accident, then this guideline should offer the support you
NBS, the leading technology platform for the construction industry has announced the appointment of Chris Slinn as its new Chief Revenue Officer. Chris joins as the fourth executive director at NBS and will support the existing board. In the newly created role of Chief Revenue Officer at NBS, Chris will lead
Thinking of adding a commercial property to your portfolio? Here are some of the things you should consider before making an offer. Choosing to buy retail space, whether it is to be let out by you or to be used in your own business, can be risky if you don’t
PICK Everard – the national property, construction and infrastructure consultancy – has formed an alliance with WT Partnership to deliver the four-year Ministry of Justice (MoJ) Professional Services Providers Framework. The Framework will deliver prisons, courts, border crossing facilities, Home Office and government buildings across Wales and Central England and
Property guardians must have a “bedrock of rights” so that their legal rights are adequately protected, according to a discussion in the House of Lords last month. Baroness Grender posed the question of “what steps they are taking to ensure that property guardians are legally protected” to the House. Property
Interserve has reached a rescue deal with its creditors to prevent its collapse, according to a statement issued by the group. Following its 21 December 2018 announcement, the board has provided further details on its deleveraging plan. The key commercial terms of the deleveraging plan have been agreed in principle
Bureau Veritas is urging the construction industry to ensure that the practical ramifications of the latest government guidance on the amended Approved Document B are understood and implemented, in order to avoid costly delays or breach of building regulations. The technical changes regarding fire safety aspects now curtails the use
Commonhold is receiving a lot of attention due to the recent Law Commission paper on resurrecting this process. This is part of a long (and some would say overdue) reform of the law concerning leasehold properties and in particular flats. Commonhold is not new and has been around since 2002. However, fewer than 20 commonholds have been created since the legislation came into force. The idea of commonhold is to revolutionise the way that flats are owned. Currently, a flat owner owns their property as leasehold. This means ownership is for a limited time (for example a 99 year lease) and only owns part of that property (usually the internal areas). The structure of the building and external areas, such as the communal hallways, roof, etc are owned by the landlord or sometimes referred to as the freeholder. As the lease term shortens, the value of the property decreases. This means that the lease is by its very nature a wasting asset. The flat owner will have to, at some stage, extend their lease to prevent this from happening and thus incur additional costs to prevent their property depreciating in value. If the lease term becomes too short (i.e. less than 80 years) it becomes very expensive to extend. There is also often tension between the relationship of the landlord and the flat owner with a “them and us” attitude being fostered. Often there are competing interests, with some landlords seeing the building as an investment opportunity which competes with the flat owners’ interests of wanting their home and their surroundings in the hands of good management which they often do not control. Commonhold eradicates both of these elements by the flat owners being the “landlords” of their flat and communal areas and are referred to as “unit holders” The unit holder will be responsible for a proportion of the cost towards the management of the building and will agree to abide by obligations set out in a commonhold community statement (CCS) which all flat owners must sign up to through a commonhold association. The idea is to democratise flat ownership with the flat owners being in control of the maintenance of their building. This way of ownership has been adopted in other countries including Australia (known as the strata system) and the USA (condominiums). If this sounds like property utopia why have very little commonholds been adopted? Some of the reasons are you need 100% agreement with all flat owners over decisions (ie management) which can be unrealistic; it is ineffective with those developments that contain commercial premises or houses. There are also very few lenders who are reluctant to lend on a commonhold property as there is lack of certainty over the protection of the lender’s security (the mortgage) should the commonhold association become insolvent. It remains to be seen if commonhold will become a way of ownership in years to come as this will mean a cultural as well as a legal shift away from the leasehold way of ownership that has existed in England and Wales for centuries.
Construction work is risky business, with accidents, injuries and property damage all liable to happen on a site. As a builder, the hazardous nature of your job brings with it a need for a comprehensive insurance policy to cover the financial impact of any incidents or claims. Issues can pop up unexpectedly, so if you don’t have insurance in place, read on to learn more about the types of policies your construction business might need to be protected financially. Builders Public Liability Insurance Builders public liability insurance is a fundamental policy to have in place for any type of construction worker. It provides cover against any claims made by a client or a member of the public who has suffered injury, or damage to a property, at the expense of building work you are carrying out. Problems that occur during a building project can often be unpredictable and unavoidable, whether that’s flood damage caused by accidentally nailing through piping or a member of the public injuring themselves by tripping over wires. As insurance expert Tradesman Saver points out, public liability insurance offers compensation for any personal injuries and property damage as well as covering the legal costs involved, giving you peace of mind that unforeseen circumstances won’t jeopardise your livelihood. Professional Indemnity Insurance Although a customer may not have building expertise, the phrase “the customer is always right” certainly comes into play when evaluating the professional standard of your services. If a customer is not satisfied that you’ve met their expectations, they may decide to take legal action. This is where professional indemnity insurance comes in, which protects you against such claims. This type of insurance covers legal costs and expenses that may occur during the process of defending the claim made against you. Mistakes are easily made, but one small error could leave you in a dire financial situation if you don’t have the right cover in place to protect your business. Therefore, if you’re running a construction business, you should carry professional indemnity insurance to cover against mistakes and errors that may occur while providing professional services. Employers Liability Insurance Employers liability insurance is a legal requirement for any business that hires, or plans to hire, a team of staff, regardless of who you’re employing and whether they’re a contractor, sub-contractor, or freelancer. This protects all employees against claims related to illness or injuries sustained during working hours. It only takes one small mistake or accident to injure someone, so it’s vital to check you have insurance to cover all possible risks. Besides, the legal requirement to have employers liability insurance means that businesses operating without are subject to fines of £2,500 for each day they don’t have proof of coverage. Contractors All-Risk Cover This covers any work carried out that is accidentally destroyed or damaged before completion, as well as temporary buildings erected during construction. A contractors all-risk policy will also insure your business against any necessary repairs onsite or if work needs to be redone due to unpreventable causes, such as floods, fires, storms, vandalism and theft. Contractors all-risk covers the two primary types of risks for builders—property damage and third party damage. CAR insurance coverage is common for such construction projects as buildings, water tanks, sewage treatment plans, flyovers, and airports. Tools and Equipment Insurance One final insurance policy to consider for your building business, tools and equipment insurance covers any costs relating to damage or theft of your tools and equipment. According to recent data, 1 in 3 tradespeople have had their tools stolen, costing victims over £3,000 on average. If your tools are stolen, not only will you take a financial hit from the actual cost of the equipment, but projects already under construction may be delayed, leading to further financial strain on the business. Any new business may also have to be declined – you can’t risk being unable to complete a job on time, or without the correct tools. Having a policy in place will protect you against any unforeseen costs. Employment Practices Liability Insurance While the aforementioned insurances are crucial for the physical aspects of your business, it’s equally important to consider the human side. This is where Employment Practices Liability Insurance (EPLI) comes in. It covers businesses for legal claims arising from employment-related issues, such as discrimination, harassment, or wrongful termination. A construction business needs to have EPLI, as the construction industry is particularly susceptible to employment-related lawsuits. Some of the common employment-related claims that EPLI covers for your construction company include discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information, claims of sexual harassment, claims of termination without cause or in violation of an employee’s contract, claims of retaliation against an employee for whistleblowing or for exercising their legal rights, and improper hiring and firing practices. EPLI can provide significant financial protection for your business when sued for employment-related claims. The cost of defending against an employment lawsuit is often high, and EPLI can help to cover the cost of legal fees, settlements, and judgments. In addition to financial protection, EPLI can help your company avoid negative publicity from an employment lawsuit. A lawsuit can damage your business’s reputation and make attracting and retaining employees difficult. EPLI can help protect your construction business’s reputation and ensure it can operate without disruption.
A collection of three office buildings along Bristol’s waterfront have been sold in a deal worth £27.75 million. Legal & General’s UK Property Fund purchased the Quayside Bristol properties from DAS and ERGO. This deal follows the recent acquisition of the Iron self-storage portfolio, its landmark self-storage deal as the Fund continues to diversify its holdings and recycle its capital into more operational and alternative assets. Situated in the established office location of Temple Quarter, the Quayside buildings are just a short walk from Temple Meads station, an increasingly important draw to occupiers. “This is an excellent buy for the Fund. The Bristol office market is currently undersupplied and has strong rental growth prospects as a result of this undersupply. The building also benefits from flexible floor plates which are in demand in the City. The combination of these strong property fundamentals and good micro-location will make this a strong performing asset for our investors as we refurbish and upgrade them over time. We have recently undertaken a similar exercise at The Landing in Redcliff Quay and have been very pleased with the level of tenant interest for modern, stylish, well connected assets in attractive city centre settings,” commented Matt Jarvis, Senior Fund Manager of the UK Property Fund at Legal & General.
No matter how carefully you drive or how much attention you pay, the risk of you being involved in a car accident is highly probable due to the increased number of road users. If you have been injured in a car accident, then this guideline should offer the support you need whether you are a passenger, driver, motorcyclist, bicyclist or pedestrian. What Should Be Done At The Scene Of A Car Accident? When involved in car accident you have a legal duty to stop at the scene, as well as your legal duty, it is also beneficial for you to stop to make sure you can assess the situation effectively, making sure no one is injured, what (if any) damage has been caused to the vehicles involved and if any other property has been damaged. Being involved in an accident is not something someone starts their day predicting, therefore, if an unfortunate event happens, it is likely you will be left in a state of shock and could struggle to process what has happened. It is important to try to remain calm and collect all the necessary details you may need, especially if you pursue to make a car accident claim for the loss and suffering you have experienced. Important information to collect at this stage would be: Vehicle Damage Evidence – this can be obtained by taking photographs via your phone, but try not just to gather evidence of your own vehicle, try to obtain pictures of any damage caused to the other parties’ vehicle as well. If the vehicle is heavily damaged, you need to get professional advice from your car insurer. Obtain The Other Driver’s Information – details including name, address, and contact details. If they are not the owner of the vehicle, then be sure to get the owner’s information to Vehicle Information – including registration, model of the vehicle and the colour Insurance Information – including the name of the insurance company and the driver policy number. Again if the driver is not the owner of that particular vehicle, try to obtain their insurance information also Independent Witness Details – this means someone who has not been involved in but has witnessed the accident and can give a clear statement if needed. They also must be unknown to either party involved to ensure they can be classed as independent. While gaining independent witness details, ensure you have gained their full name, contact number and address Photographs That Can Help Explain What Has Happened, e.g. taking photographs of road markings, how the vehicles have positioned themselves after the accident etc. It is important to try and remain calm and keep yourself and any passengers you may have safe, therefore if you feel your safety is at risk or someone has been badly injured then call the emergency services and seek immediate medical attention. If the police were involved, make sure all information given by them is kept safe, most importantly the reference number they provide you Gaining The Medical Attention You Need After An Accident However minor or major your injuries feel due to the accident, it is important you seek the appropriate medical attention to ensure there is no underlying condition caused and to ensure you have received all the treatment you need. Depending on the severity of your injuries will depend on what type of medical attention you seek, if your injuries are severe you may want to call the emergency services to get an ambulance, however, if they seem minor in nature you could attend your GP or a local NHS walk-in centre. A common occurring injury brought on by RTAs (Road Traffic Accidents) is known as whiplash. This type of injury is caused by a sudden forceful movement which is caused by the impact of your vehicle colliding into something. Common tell-tale signs of having whiplash are discomfort and stiffness in your neck area when moving, along with headaches. Who Is Eligible To Make A Claim? All road users have a legal right to make a claim when they have been injured in an accident that isn’t their fault, this includes: Vehicle drivers Passengers – whether you are a passenger on public or private transport Pedestrians Motorcyclists Bicyclists A passenger can start a claim regardless of whether it is the driver of the vehicle they were in who is at fault. If you were in a passenger in your family member’s or friend’s vehicle, in a taxi or on a bus/coach, whether it was your driver who has caused the accident or not you could be eligible to claim. A passenger could also be eligible to make a claim if they have sustained an injury due to careless driving. The driver owes their passengers a duty of care to ensure they do not drive carelessly causing anyone to fall, they should also ensure care is taken when passengers are entering or exiting the bus. Making A Claim For A Car Accident Starting a claim for compensation for your injuries and other losses sustained in an accident can be quick and easy, simply contact specialist solicitors, and they will guide you through the entire process. Often as a passenger, it is confusing to know if you are eligible to claim and who from, especially if you feel the driver of the vehicle you were in may be at fault. This is where your solicitors will be able to help you, letting you know from the first point of contact if you have a claim and whose insurance you would be claiming from. Starting Your Claim Starting a claim is quick and easy, once you have begun speaking with a solicitor you will find out if you have a valid claim and be able to gain tailored advice that will best suit your situation. After gaining the advice, if you wish to make a claim, the setup will require the following details: Your personal details – e.g. Name, Address, Phone Number, DOB, National
NBS, the leading technology platform for the construction industry has announced the appointment of Chris Slinn as its new Chief Revenue Officer. Chris joins as the fourth executive director at NBS and will support the existing board. In the newly created role of Chief Revenue Officer at NBS, Chris will lead on NBS’s ambitious sales growth, in the UK and globally. Chris has extensive experience of global sales and marketing strategy achievement within the construction sector, experience that has spanned a number of transformational years for the industry, including the move to cloud based offerings. Pair this knowledge and experience with NBS’s leading platform with its unrivalled reputation for supporting customers around the world, NBS is well positioned to achieve its growth. The appointment is a further extension of the continued investment in NBS, following the £31.8m investment in the business by LDC in 2018, the private equity arm of Lloyds Banking Group. I am delighted to be able to welcome Chris to the team and look forward to working with him to drive our business forward. Chris brings a wealth of experience with him which will be invaluable in supporting continued growth in our core UK markets, as well as building our businesses in Canada, Australia and the Asia Pacific region. On starting his new role, Chris said: When I was approached to join NBS, I could immediately see the opportunity for growth both in the UK and Internationally. Our market leading software for specification and collaboration in the construction process, combined with the unparalleled exposure we can provide building product manufacturers – means we are uniquely placed to enable support efficient digital construction. I am genuinely looking forward to working with the NBS team and LDC as we look to take this business to the next level. Formerly in the role of Sales Director for EMEA at Trimble, Chris was accountable for direct sales in Switzerland, Germany, Netherlands, Belgium, Austria, Romania, France, UK and the Middle East. In 2017 NBS acquired Canada based Digicon a well-established specification content business in this territory, and at the same time set-up a team in Australia. Since then, NBS has collaborated with specifiers, manufacturers and the wider construction sector, to develop the Canadian and Australian content sets. The result being a platform what the industry wants and needs, NBS Chorus, a cloud -based specification platform supporting global design and construction. The use of cloud technology, ensures that those using the new platform have the latest software and global content at all times, improving collaboration and efficiencies across whole teams. Minimising risk and maximising efficiency with access on all devices, any time anywhere. To find out more about NBS Chorus, please visit www.theNBS.com
Thinking of adding a commercial property to your portfolio? Here are some of the things you should consider before making an offer. Choosing to buy retail space, whether it is to be let out by you or to be used in your own business, can be risky if you don’t entirely know what you are doing. Here are some of the things which you need to know about if you are considering buying commercial property in 2019. Find the Right Solicitor If you are thinking about starting a property portfolio, you should search for a firm of commercial property solicitors to help you out. They will be the legal experts you need to find the perfect property. With the help of the right firm, you may even find legal advice for a whole range of different topics. You could find people willing to help with commercial taxation or even acquiring any permits or licenses your commercial space needs. Building a legal team who can help you out with all your legal needs from within the same firm will prove invaluable, as you know that all your concerns can be handled internally by a group of colleagues. Is It in a Good Location? Location is everything for a business. Is it located on a high street or in some other commercial zone? You can guess that this will get it the traffic it needs to support a business. Buying a commercial property which is a little out the way can be risky, unless you plan to open a business which would suit this type of location. Finally, you should always take a look at the building’s access. What are the streets around the property like, and is there good access to major roads? These are all questions you need to ask. Look at the Building’s Amenities When you have a property in mind, you should take a look at what else you can get with it. Does it have a designated parking area your customers can use? If it is part of a wider retail complex, what benefits do you get as an owner? You should also check out whether or not the property has any licenses or permits and whether you need to apply for them. For example, a cafe might need a certification of hygiene from the local council before they are able to open for business. How Much Renovation Does It Need? Obviously, either you or your tenant will renovate the property to best suit the business going in there. However, you should make sure that all the basic amenities are in place before the renovation begins. If it is an older business you have purchased, how safe is the wiring? When was the last time that a complete refit took place? These are the questions you need answers to before you commit to buying a property for commercial purposes. If it does not match the local building regulations then you will need to fix this before you allow a business to occupy the space. Follow these tips and it won’t be long before you have found the perfect business to add to your property portfolio!
PICK Everard – the national property, construction and infrastructure consultancy – has formed an alliance with WT Partnership to deliver the four-year Ministry of Justice (MoJ) Professional Services Providers Framework. The Framework will deliver prisons, courts, border crossing facilities, Home Office and government buildings across Wales and Central England and was procured via the Crown Commercial Service (CCS) framework. Andrew Seaman, national director at Pick Everard said: “Pick Everard has been delivering cost management services under the CCS framework since its inception. We’re delighted to be working in partnership with WT Partnership under this framework, delivering cost management services. “This is a significant custodial framework, which will support the MoJ in achieving its objectives to deliver capital and whole life cycle costs within value for money parameters, whilst ensuring timely project delivery and high quality outcomes.” WT Partnership – an international cost and project management consultancy – has been working with the MoJ for more than 15 years so has extensive experience in the sector and understands every type of project requirement. Andrew continued: “We work with more than 500 supply chain partners across the UK and, through the development of mutually beneficial relationships and the identification of sector specialisms, we’re able to provide alternative routes to market for our clients. “This partnership will benefit the client by ensuring that the most appropriate specialists are on the project team. The alliance also benefits WT Partnership by ensuring that it continues to deliver major projects for the MoJ, whilst utilising our experience on the CCS framework. “The MoJ provides essential public sector buildings and we’re incredibly proud to be working on such an important opportunity.” David Kendall, director at WT Partnership said: “We are delighted to be appointed to work with Pick Everard to deliver cost consultancy services to the MoJ on its new framework for the Wales and Central England region. “This provides continuity of delivery to an important client with whom we have been working since 2003 and builds on the professional working relationship we have had with Pick Everard over a similar period.” Over the last two years, Pick Everard has engaged with almost 200 supply chain partners, providing new routes to market and generating £1.3 million worth of spend in local economies across the UK. For more information visit: www.pickeverard.co.uk.
Property guardians must have a “bedrock of rights” so that their legal rights are adequately protected, according to a discussion in the House of Lords last month. Baroness Grender posed the question of “what steps they are taking to ensure that property guardians are legally protected” to the House. Property guardians have some legal protections – but depending on the arrangements in place, these protections are often fewer than those of tenants. Lord Best, who is the chair of a Ministry of Housing, Communities and Local Government working group for the regulation of property agents, said he “would be very happy to look at the regulation of property guardian providers, alongside his current portfolio of estate agents, letting agents and managers of leasehold properties”. Lord Bourne added that there had to be a drive “ensuring that property guardians have a bedrock of rights in all situations so that people are properly protected. That is the key.” The issues often encountered include disrepair including penetrating damp or condensation mould growth, through to unmanaged compliance issues such asbestos, faults with fire alarm panels, lack of electrical and gas safety certificates. Suggestions put forward include a ‘kite-marking’ scheme and non-disclosure agreements in contracts.
Interserve has reached a rescue deal with its creditors to prevent its collapse, according to a statement issued by the group. Following its 21 December 2018 announcement, the board has provided further details on its deleveraging plan. The key commercial terms of the deleveraging plan have been agreed in principle with all of Interserve’s lenders, bonding providers and the Pension Trustee. The board believes the deleveraging plan will provide Interserve with “a strong balance sheet and the platform to deliver on its strategy”. Debbie White, CEO of Interserve, said: “Agreeing the key commercial terms of the deleveraging plan with our lenders, bonding providers and Pension Trustee is a significant step forward in our plans to strengthen the balance sheet. The board believes that this agreement will secure a strong future for Interserve. “This proposal has been achieved following a long period of intensive negotiation and has the support of our financial stakeholders and the government. Its successful implementation is critical to the Interserve Group’s future and all of its stakeholders. The deleveraging plan will, alongside our ‘Fit for Growth’ transformation programme, place us in a strong position to deliver our strategy, be competitive in the marketplace and provide a secure future for the Interserve Group’s employees, customers and suppliers.” The deleveraging plan is expected to result in Interserve Group’s “pro forma net debt reducing to circa £275 million achieved through issuing c.£480 million of new Interserve equity”. Interserve expects to launch the finalised deleveraging plan in the next few weeks. The deleveraging plan will be “subject to approval by Interserve’s shareholders”. The company’s statement added: “Whilst Interserve’s objective remains to implement a fully consensual transaction, Interserve is also actively preparing alternative plans to ensure the proposed transaction can be implemented in the event that shareholder approval is not forthcoming.”
Bureau Veritas is urging the construction industry to ensure that the practical ramifications of the latest government guidance on the amended Approved Document B are understood and implemented, in order to avoid costly delays or breach of building regulations. The technical changes regarding fire safety aspects now curtails the use of desktop studies and reinforces the need to ensure appropriate tests are carried out on products by independent, fully accredited bodies. It relates to building regulation applications lodged after 21st January 2019, with a requirement that applications made before that date have made a ‘meaningful’ start on site within two months – by 20th March 2019 – for the previous provisions to be valid. The guidance is aimed at all product testing but is a result of the government’s findings last year on cladding testing and fire door testing specifically. Andy Lowe, technical director of building control at Bureau Veritas, comments: “The government has demonstrated that they are determined to move quickly to enforce building regulation changes, with this latest update coming only a month after the 21st December implementation of the combustible materials ban in external walls in new buildings. That in itself surprised many in the industry, as it extended further than anticipated to include all parts of external cladding in new and change of use buildings with a floor over 18 metres and above and applies to residential buildings, hospitals, student accommodation and dormitories in boarding schools. “The latest guidance will have significant ramifications, as due to the nature of testing it is a more in-depth and costly process, notwithstanding the fact that current testing facilities are limited and often result in significant delays, without this extra requirement consideration. So this will have to be factored in to the construction programming process and assessments should not be regarded as a way to avoid a test where one is necessary, as this will be a serious breach of legislation.” The government has also reiterated its firm endorsement of the Hackitt report on the process of fire safety and building regulations and has committed to bring forward a series of consultations on the process of regulation in the spring. Calls for further evidence have already been instigated on technical aspects of building regulations, which will include additional enhancements on fire safety, considerations around thermal performance (Part L) and ventilation strategy (Part F), along with the need to update accessibility standards under Approved Document M to reflect the new BS8300 recently updated in January 2018. Andy adds: “Whilst this government action and tighter regulation control is certainly welcome, as change is certainly needed in order to adopt a best practice approach to fire safety, the degree and speed of change could prove a challenge. The coming months are going to be extremely busy and time critical and as such there is work to be done to understand how things will play out on a practical level, with tailored support available to those who need it in order to manage the changes and challenges ahead.” Bureau Veritas is a leading testing, inspection and certification company with a vast experience of the building control sector. Bureau Veritas Building Control UK combines technical expertise and market-leading systems with unrivalled industry experience to deliver building control services to some of the biggest names in construction. Bureau Veritas will be proving additional guidance on the amended regulations via a series of seminars and technical briefing notes. For further information, call 0345 600 1828 or visit www.bureauveritas.co.uk.