Latent Defects Case Study
Our client, an experienced and well known developer, was negotiating for provision of a 900,000 square foot distribution warehouse in the UK.
They requested a broad indication of likely costs to put a commercial latent defects policy in place during their initial negotiations. Over the following months we provided various options and eventually the deal was signed with the requirement to provide Latent Defects cover.
We then undertook further negotiations with funders, lawyers (both funders and purchasers) and insurers culminating in the provision of cover for a £30m build. Various extensions were built in to the cover including Mechanical and Electrical equipment and Business Interruption covers.
We drafted and redrafted the policy until the cover was accepted by all parties and issued accordingly.
Property Developer Case Study
Building and Land Guarantees was approached by one of the largest property developers in Europe with a 14 unit site which they were funding the final stages on.
The property was owned by a receiver (insolvency practitioner) as the bank, following the previous developers demise, had sent them in to complete the work. Our client was funding the finalising of the development with the option to then buy a development from them when the project was completed.
Over the course of 7 years, the project had used 5 different contractors for various different reasons. Worryingly, no guarantees were in place during any of the works and they were extremely difficult to obtain due to the type of work being done. Our client had a quotation from another warranty provider at around £200,000 premium for what it was and we were able to place cover at less than £100,000 initially.
In addition to the mass saving, we were also able to assist in getting the properties through the insurers audit and therefore the sales completed on time (despite the lack of information available) allowing the owners to move in.
Tesco Case Study
When Tesco were planning to build their new flagship store in Dublin, they pushed for quality every step of the way.
When it came to cladding for the store, they wanted special structural insulated panels overlaid with larch sheeting to compliment the local environment. The issue the contractor faced was that Tesco wanted a long term insurance policy on the exterior of the store.
We worked closely with a major broker to provide a bespoke policy to deliver the insurance cover needed, therefor assisting the contractor to win the contract.
Our technical inspector worked closely in partnership with the contractor throughout the project and a first class exterior was delivered and installed within tight deadlines, to the high specification demanded by Tesco.
At BLG, we are used to working within tight deadlines for our clients and this was a perfect example!