Transcript ACC QLD/NT Property Committee

ACC QLD/NT Property Committee
ROAD MAP:
A 4-Stage Property Development
Process for Churches, Schools and
Other Facilities
Version 1: August 2013
See Disclaimer
ACC QLD/NT PROPERTY COMMITTEE:
THE 4 STAGE PROCESS FOR PROPERTY DEVELOPMENT
AND IMPROVEMENT OF CHURCHES, SCHOOLS AND
OTHER FACILITIES
STAGE ONE:
FEASIBILITY
STUDY
APPROVAL
REQUIRED
TO PROCEED
Version 1: August 2013
STAGE THREE:
DETAILED
DESIGN
STAGE TWO:
BUSINESS CASE
APPROVAL
REQUIRED
TO PROCEED
STAGE FOUR:
CONSTRUCTION
APPROVAL
REQUIRED
TO PROCEED
See Disclaimer
Stage 1: FEASIBILITY
STAGE 1
FEASIBILITY
(48 Hours)
• Get third party advice
from ACC Property
Committee
Version 1: August 2013
CHECK
CHURCH
CONSTITUTION
FOR
APPROVALS OR
VOTING
REQUIRED TO
PROCEED TO
NEXT STAGE
Explanation:
The Feasibility Stage will be encountered many times during the life of the Church as
congregations consider the purchase of new property, the leasing of new premises,
the renovation and upgrade of existing facilities etc. The Church must clearly identify
what the future long-term need requirements are as this will assist in eliminating
unsuitable sites and in wasting resource on short-term alterations.
The Feasibility Stage can sometimes be time constrained especially when a property
is up for sale or lease and the Church needs to act quickly to get a contract on the
property.
As such the Feasibility Stage has a 48 hour timeframe in which the Church needs to
obtain some frank and realistic assessment on the property being considered for
purchase or rental prior to entering into a ‘conditional’ contract which must, at the
least, contain a ‘due diligence’ clause.
The ACC Property Committee has access to a number of property developers who
are able to assist the Church with quick and practical advice as to whether a contract
should be pursued or not. This advice by nature will be very rough and more of a
snapshot of the current situation and data obtained. However it will provide the
Church with a frank perspective of whether the property is suitable for their needs.
If a contract is to be entered into, it must be ‘conditional’ so that the Church has
ample time to engage consultants and to prepare the Business Case. It is strongly
recommended that the contract be conditional for at least 30 – 60 days to enable
the Church to engage consultants, to get advice, to prepare the Business Case and to
get endorsement. The approval to proceed with signing the contract and moving into
the Business Case rests with the Church Board and they must have time to weigh up
all matters before committing the Church to substantial risk.
It must be stressed that the first property a church finds has historically not been the
most suitable. It is recommended the procurement of a suitable property not be
rushed but systematically researched until the right one is found.
Preliminary Legal and Bank advice. Conditional contracts mentioned above need
legal advice for cost budgets, realistic time frames and other conditions such transfer
duty. Banks/lenders should also be consulted for loan feasibility and their time
frames for approvals, etc.
See Disclaimer
Stage 2: BUSINESS CASE
STAGE 2
BUSINESS CASE
(30-60 DAYS)
•Engage Town Planners to
undertake due diligence
and prepare DA
•Engage Architect to
prepare and cost
preliminary building
drawings
•Shop around Banks to
sort out finance
•Obtain Legal advice on
contract
•Obtain Church Board
approval
Version 1: August 2013
CHECK
CHURCH
CONSTITUTION
FOR
APPROVALS OR
VOTING
REQUIRED TO
PROCEED TO
NEXT STAGE
Explanation:
Stage 2, the Business Case, involves the church engaging a number of professionals to
undertake key investigations to ensure the development is suitable and the contract
can go ‘unconditional’.
Town Planner: All sites need Local Council Development Approval prior to specific
uses of the building or site. The Town Planner will firstly undertake ‘due diligence’ to
ascertain if Council would entertain the proposed development / use of the site or
building. If there are no great impediments (planning / services) and Council approval
seems assured, the Town Planner should continue to be engaged to undertake a
planning study and lodge a Development Application for the proposed development /
use.
Architect: The cost of buildings or renovations, office fitouts and multi-media are often
much more than expected, especially as Council charges, external infrastructure works
and internal site works such as car parks and landscaping add to the total cost of the
project. An architect is engaged to develop concept drawings for the building, fit-out
and engineering works and to provide a ‘total’ cost estimate for the site development.
Care must be taken to see that this estimated cost includes all costs. Once satisfied all
costs are accounted for, it is recommended that a contingency of 10-20% be added to
the cost provided by the architect to cover those additional costs that are not yet
obvious.
Bank/Lender: The financing of the development needs to be carefully thought through
by the Church. It is strongly recommended that a number of banks be approached to
identify the best financing arrangement.
Legal: Detailed advice needs to be sort prior to the contract going ‘unconditional’. It is
expected the solicitor will examine and endorse all aspects of the development prior
to advising the contract can be executed.
The final step is for the Church membership and/or Church Board to approve the
Business Case. The Business Case must be carefully considered as this is the last
opportunity to withdraw or make changes prior to the Church being exposed to
considerable design costs.
See disclaimer
Stage 3: DETAILED DESIGN
STAGE 3
DETAILED
DESIGN
(60-90 DAYS)
•Engage Architect to
prepare and cost detailed
building drawings (incl
structural and engineering
drawings)
•Engage Mechanical and
Electrical engineers to
prepare drawings for fire
safety, air conditioning,
waste, water, lighting,
data.
•Engage Quantity
Surveyor to determine a
an accurate cost estimate
• Engage Building Certifier
to approve Building
Application
• Check Church
Constitution re obtaining
Church and/or Board
Endorsement to proceed
to construction.
Version 1: August 2013
CHECK
CHURCH
CONSTITUTION
FOR
APPROVALS OR
VOTING
REQUIRED TO
PROCEED TO
NEXT STAGE
Explanation:
It is essential that Stage 3 – the detailed design phase be undertaken by
professional consultants who are familiar with the site location and
standard of construction proposed by the Church.
The engagement of consultants for Stage 3 is not cheap but every effort
must be made by the church to understand and to critique the drawings
prior to letting the construction contracts. This time spent thinking about
each and every aspect of the construction will save considerable variation
claims when the building works begin.
Ensure external services upgrades (electricity/communications etc.) are
accounted for and timeframes can be met.
It is important that an accurate cost estimate is prepared using quantities
calculated by a quantity surveyor so that the Church is well aware as to its
total liabilities for the development.
Once all drawings have been amended to the satisfaction of the Church
and the Board endorses the construction to proceed, the Church is then
able to engage either a building contractor, or alternatively a project
manager to oversee the works. Care must be taken with the later
particularly the legal responsibilities of any Church that wants to assume
responsibility for the development works rather than engage a builder.
The land must be owned by the church before any work is undertaken.
Stage 4: CONSTRUCTION
STAGE 4
CONSTRUCTION
(90-180 DAYS)
•Engage Builder
•Engage Architect to
oversee the works and
ensure compliance
Explanation:
Stage 4 sees the building works and associated engineering site works
undertaken by contractors.
Note that the Church must settle on the property before any work commences.
It is important that the Church ensure all registrations, insurances and licenses
are in place before the contract is signed with the builder. It is strongly
recommended that the Church take an active role in ensuring that construction
adheres to the approved drawings.
The completion of the construction phase will see the builder advise the church
of ‘practical completion’. It is recommended that the Church either retain an
architect or engage a specialist inspector to regularly inspect the construction
works for any defects or omissions and to sign off on the Practical Completion.
Version 1: August 2013
Disclaimer: This document is intended for information purposes only. Please ensure that
you obtain the most current version of this document before proceeding.
ACC QLD/NT Property Committee
ROAD MAP:
A 4-Stage Property Development
Process for Churches
For more information please contact:
Brett Mullen – [email protected]
Or visit the ACC QLD/NT website
www.qld.acc.org.au
Version 1: August 2013