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RELIANCE HOUSE

20 WATER STREET

LIVERPOOL L2 8UQ

EXTENSION & CONVERSION PROJECT

TO CREATE 139 APARTMENTS

INVESTORS REPORT 01

22nd NOVEMBER 2017

Prepared By: G.Moody BSc Hons MRICS C.Build E MCABE

Ref: PP17-1247

2 Reliance House, Water Street, Liverpool – Interim Investors Report

CONTENTS

1. Introduction

2. Development proposals

3. Executive summary

4. Appointments and warranties

5. Statutory requirements

6. Insurances

7. Programme

8. Quality

9. Progress

APPENDICES

Appendix ‘A’: Construction Progress Images


1.0 INTRODUCTION

1.1 Interim report

1.1.1 This Interim Investors Report has been prepared by Hardie Brack Limited acting as

Employers Agent on behalf of Legacie Water Street Ltd. This report is for the sole

benefit of the persons to whom it is addressed and their professional advisers.

1.2 Project

1.2.1 The project comprises the extension and conversion of existing office premises at

Reliance House, Liverpool into residential apartments.

1.3 Form of Contract

1.3.1 JCT Design and Build, 2011 Edition, amended to suit this project.

1.4 Developer

1.4.1 Legacie Water Street Ltd., 3 Rose Place, Liverpool L3 3BN (Company No: 10234713)

1.5 Contractor

1.5.1 Impel Contracts Ltd., 19 Old Hall Street, Liverpool L3 9JQ (Company No: 949413)

1.6 Inspection

1.6.1 The property was last inspected on 17th November 2017 by G. Moody BSc Hons MRICS

C.Build E MCABE. The inspection of the building has been solely for the purposes of

preparing this report

2.0 DEVELOPMENT PROPOSALS

2.1 Site address

2.1.1 Reliance House, 20 Water Street, Liverpool L2 8UQ.

2.2 Description

2.2.1 Three storey roof extension and conversion of existing six storey plus basement office

building to form 139 no. apartments.

2.3 Accommodation

2.3.1 The existing accommodation comprises vacant office space on six floors.

2.3.2 The completed development will comprise 139 one and two-bedroom residential

apartments.

2.4 Programme

2.4.1 Commencement date: 6th February 2017

Completion Date Conversion: 31st January 2018

Completion Date Extension: 29th June 2018

Contract Duration: 71 Weeks


2.5 Contract

2.5.1 JCT Design and Build Contract 2011 Edition, amended to suit this project.

2.6 Specification

2.6.1 The 3 storey extension, refurbishment, adaptation and the sub-division works

generally comprise:

• Internal sub-division with non-loadbearing partitions

• Installation of structural bracing partitions

• Steel framework support for new extended shell structure

• Flat roof structure over extension

• Metal web floor joists

• Extension aluminium curtain walling and external windows and doors

• Associated adaptations

• Installation of mechanical and electrical services

• Installation of new lifts

• Installation of kitchen and sanitary fittings

• New internal finishes, joinery fittings and decorations

• Internal and external repairs

All as detailed in the Employer’s Requirements Document, Contractor’s Proposals and

architectural, structural engineers and services drawings.

2.7 Professional team

2.7.1 The principal professional team comprises:

Architect: Faulkner Chester Hall

Structural Engineer: Elliott Bond Consulting Ltd

Mechanical & Electrical Services: Progressive Design Services Ltd

Employer’s Agent/PQS: Hardie Brack Ltd

2.7.2 There are supplementary consultancies in respect of an Approved Inspector Building

Control, Principal Designer and Acoustics.

3.0 EXECUTIVE SUMMARY

3.1 Parties

3.1.1 The parties to the project are:

Employer: Legacie Water Street Ltd., 3 Rose Place, Liverpool L3 3BN

(Company no: 10234713)

The Employer is a locally based Developer with experience in

undertaking residential conversion projects of the type and

scale proposed in this Contract.


Contractor: Impel Contracts Ltd., 19 Old Hall Street, Liverpool L3 9JQ

(Company no: 9494137)

The Contractor is a locally based general building contractor

with experience in undertaking residential conversion

projects of the type and scale proposed in this Contract.

Professional Team: The Developer has appointed the design team comprising:


Structural Engineer: Elliot Bond Consulting Ltd

M&E Engineers: Progressive Services Design Ltd

Principal Designer: Rawlings Safety & Training

Consultancy Ltd

Employers Agent: Hardie Brack Ltd

All consultancy services with the exception of the Employer’s Agent are to be Novated

to the Contractor.

Subsidiary investigative and advice consultancies will be required in respect of Energy,

Acoustics, Drainage and asbestos surveys.

3.2 Location

3.2.1 The Reliance House building is located in Liverpool City Centre in an established and

thriving business district close to the Pier Head, main shopping, shopping and tourist

attractions.

3.3 Construction

3.3.1 The existing building comprises a framed structure with concrete floors and clad

externally in brick and stone masonry. External windows are alloy framed and there

is secondary glazing.

3.3.2 The development comprises conversion work to the existing building and to construct

3 storey extension at roof level. Strengthening upgrades of the existing building

structure would be required.

3.4 Site investigations and environmental

3.4.1 No new construction works are involved and no major environmental risks have been

noted.

3.4.2 No archaeological investigations are required.

3.4.3 Site investigations have been coordinated by structural engineer to determine and

confirm the adequate load bearing capacity of the structure.

3.4.4 Surveys have been carried out on the drainage and existing internal service

installations. An asbestos survey has been undertaken and this has confirmed at this

stage that no asbestos is present.


3.5 Specification

3.5.1 Specifications for the works are detailed in the Employers Requirements Document

and architectural and engineer’s drawings. Internal adaptation and sub-division is to

be undertaken. Structural bracing partitions are to be installed to allow for additional

floors to be added to the building.

3.5.2 The internal design proposals remain at development stage. The level of specification

for the apartments is considered to be consistent with and appropriate to the private

residential accommodation in this market.

3.6 Contract

3.6.1 The contract for the development is the JCT Design and Build Contract 2011.

3.6.2 The Contract is dated 3rd February 2017 and has been signed by the parties.

3.6.3 The Contract Documents comprise:

• JCT Contract

• Employers Requirements Document

• Contractors Proposals

• Contract Sum Analysis

3.6.4 The contract documentation is considered appropriate for the scale and complexity

of the project.

3.6.5 The procurement route for the works is via an established relationship between the

Developer and Contractor for direct procurement of key sub-contractor packages,

materials and relevant direct Sub-Contractors.

3.6.6 It is understood that there is no Contract Bond/Guarantee in place. This would add

cost to the contract.

3.7 Lease/Purchase agreements

3.7.1 Copies of pre-sale agreements have not been provided. It is to be confirmed that

these equate to the development appraisal assumptions. The tenure of the existing

building has not been confirmed at this stage.

3.8 Programme

3.8.1 A detailed design procurement programme is yet to be provided. Construction issue

designs are in hand to facilitate construction works as programmed. The consultants

are responsible for the detailed design in accordance with the contract documents.

3.8.2 The Contractor has provided a contract programme detailing the stages of the work

on a floor by floor basis. Conversion and refurbishment works are due for completion

by 31st January 2018 and three storey extension due for completion by 29th June

2018. The contract programme has been the subject of extensive discussion between

the Developer and the Contractor and is considered to be a reasonable time in which

to complete the works.


3.9 Appointments

3.9.1 Professional Appointment with scope of services, Collateral Warranty and Novation

documents have been issued to the professional team. Confirmation of signature and

completion is awaited. The design team is however proceeding with the required

design input to achieve the construction programme.

3.10 Approvals

3.10.1 The conversion development in planning terms is deemed as Permitted Development

under the current Town and Country Planning Act General Development Order.

Liverpool City Council have confirmed Prior-Approval (Ref: 16P/1531) by Notice on

26th August 2016. There are no related section 106 agreements or planning

obligations. As a Prior-Approval, there are no planning conditions. There is a Planning

Notice Informative requiring purchasers to assess the acoustic provision of the

residential units.

3.10.2 Separate planning application has been made for the 3 storey extension, Liverpool

City Council have confirmed Approval (Ref: 17F/0960) by Notice. Section 106

agreements have been sanctioned which have been drafted and authorised.

Application has been submitted for the discharge of planning conditions.

3.11 Insurances

3.11.1 Contractor’s Insurance provided under Clause 6.4.1.2 of the Contract is £5,000,000

for conversion works and separate £5,000,000 cover for extension works.

3.11.2 Insurance Option C Applies under the terms of the Contract.

3.11.3 Copies of current professional indemnity insurance certificates have been received

from the professional team.

4.0 APPOINTMENTS & WARRANTIES

4.1 Appointment and Collateral Warranty documents with Step-in Rights have been

issued to the Professional Consultants as follows:


Structural Engineer: Elliott Bond Consulting

M&E Engineer: PSD Ltd

Principal Designer: Rawlings Consultancy

Employers Agent Hardie Brack

4.2 Under the terms of the contract, Contractor/sub- contractor collateral warranties are

to be provided by:

Main contractor: Impel Contracts Ltd

Lift Installer Classic Lifts

Mechanical and Electrical Services sub-contractors: TBC

4.3 Copies of the completed and signed documents are awaited.


5.0 STATUTORY REQUIREMENTS

5.1 Planning

5.1.1 Conversion of the building is deemed as Permitted Development under the current

Town and Country Planning Act General Development Order. Liverpool City Council

have confirmed Prior-Approval (Ref: 16P/1531). Planning permission hasd been

granted for the 3 storey extension by Liverpool City Council (ref: 17F/0960) by Notice.

5.2 Planning conditions

5.2.1 Under the Prior approval Permitted Development rights there are prior-occupation

Planning Conditions to be discharged. Application to discharge planning conditions

has been submitted by the Architect.

5.3 Conservation

5.3.1 The building is located in the Castle Street Conservation Area and the within the

boundaries of the Liverpool World Heritage Site.

5.3.2 No external alterations are proposed to the building that would require conservation

area consent.

5.3.3 Any new external signage or lighting would require local authority approval.

5.4 Archaeology

5.4.1 There are no known archaeological site issues that will affect the development.

5.5 Section agreements

5.5.1 There presently no anticipated Section 106, Section 57 or Section 278 Agreements

with the local authority.

5.6 Over-sailing etc

5.6.1 Use of a tower crane is not proposed by the contractor. There are no anticipated Over-

sailing Rights issues.

5.7 Building Regulations

5.7.1 Building Regulations Compliance for the project is being dealt with by Celtech as

Approved Inspectors.

5.7.2 The Approved Inspector is liaising with the Merseyside Fire Brigade to agree the Fire

Strategy for the completed residential accommodation.

5.7.3 SBEM/EPC certification is being provided by EAS.

5.8 Construction (Design & Management) Regulations

5.8.1 The appointed Principal Designer is Rawlings Safety and Training Consultancy Ltd.

5.8.2 The Pre-Construction Information and Construction-Phase Plan are in place.

5.8.3 A Refurbishment asbestos survey has been undertaken by UK Environmental and

Asbestos Solutions. No asbestos was reported.


5.9 Energy appraisal

5.9.1 An energy appraisal and predicted EPC assessment is being undertaken by EAS.

5.10 Party Walls

5.10.1 The Employer’s Party Wall surveyor has advised that there are presently no

anticipated works that will require serving of Notices under the requirements of the

Party Walls Etc. Act Legislation.

5.11 Rights of Light etc.

5.11.1 The Developer envisages no Rights of Light issues.

5.12 Easements

5.12.1 The Developer advises that there are no known Easements effecting the proposed

development.

5.13 Site boundaries

5.13.1 The Developer anticipates no site boundary issues that will affect the development

works.

6.0 INSURANCES

6.1 Contract

6.1.1 The Contract Insurance requirement is £5,000,000.

6.2 Professional Indemnity

6.2.1 Copies of current Professional Indemnity Insurance Certificates have been obtained

from the Professional Team.

6.3 Reinstatement

6.3.1 Insurance for reinstatement of the existing building premises is to be maintained by

the Employer.

6.4 Latent defects

6.4.1 Latent Defects Insurance is being provided by Advantage HCI.


7.0 PROGRAMME

7.1 Construction

7.1.1 The original project programme has been superseded by a floor by floor programme.

7.1.2 A schedule of anticipated apartment completion dates is awaited from the contractor.

7.2 Variations

7.3 There have been some significant Contract Variations to date relating to omitting the

Fifth floor from the contract. Extensive site investigation and remedial strengthening

works to the steel framework structure in order to support Phase 2 roof extension.

Greater thermal upgrade was required to external walls of the building envelope.

Electrical supply upgrade is an unforeseen item to be installed. UU water

infrastructure was excluded from the main contract. Smoke ventilation system design

identified more extensive works. Expenditure of provisional sums items and contract

variations are required to be incorporated within the overall construction

programme.

8.0 QUALITY CONTROL

8.1 Latent Defects Insurance is being provided by Advantage HCI who will be undertaking

regular site inspections.

8.2 Building Control approval site inspections are being undertaken by Celtech who have

been appointed as Approved Inspectors on the development.

8.3 Employers QS undertake regular inspection of the work to check compliance with

drawings and specification.

8.4 A show flat with public access has been constructed at ground-floor level in advance

of the main apartment completion works.

9.0 PROGRESS

9.1 Construction Progress Status

9.1.1 The status of works generally complete at the time of last Inspection was as follows:

• Consultants design being subject to construction details

• Site investigations

• Ground floor adaptations

• Partition walls structures near completion

• First fix electrical, 2nd fix commenced

• First fix mechanical, 2nd fix commenced

• Demolition lift motor room

• First fix plumbing and sanitary, 2nd fix commenced

• Kitchen installations commenced

• Second fix joinery commenced

• Wall and floor finishes commenced

• Decorations commenced


9.1.2 The works are recorded to be approximately 4 weeks behind programme, mainly

being due to delays with installing hoist to remove materials, complications taking up

suspended floors, investigations required to existing steel Columns and providing

strengthening support. Enabling works have also commenced in relation to extending

above the building. The Contractor has reviewing the programme of works to

overcome delays and is satisfied completion dates will be met.

Hardie Brack Ltd

Pekin Building

23 Harrington Street

Liverpool L2 9QA

22nd November 2017


Appendix ‘A’

Construction Progress Images

INVESTORS REPORT

RELIANCE HOUSEIR-01 22-Nov-17

Construction Progress [22.11.17]The status of works generally complete at the time of last Inspection was as follows:

• Consultants design being subject to construction details

• Site investigations

• Ground floor adaptations

• Partition walls structures near completion

• First fix electrical, 2nd fix commenced

• First fix mechanical, 2nd fix commenced

• Demolition lift motor room

• First fix plumbing and sanitary, 2nd fix commenced

• Kitchen installations commenced

• Second fix joinery commenced

• Wall and floor finishes commenced

• Decorations commencedExtension & Conversion of Reliance House to Create

139 Luxury Apartments

FOURTH FLOORReliance House, 20 Water Street, Liverpool

Extension & Conversion Development

Landing plastered

Light fittings installed

Reliance House, 20 Water Street, Liverpool – Extension & Conversion Development

Fourth Floor Progress [22.11.17]

Corridor walls & ceiling

decorated

Light fittings

installed



Corridor smoke shaft

partition wall

formed

Corridor ceiling

services

access hatch

installed

Kitchen units installed



Kitchen appliances and sink tap installed

Bathroom toilet and basin



Bathroom heated mirrors

and shower screens installed

Heating boiler and electrical distribution board to cloaks cupboard



Radiators installed Bedroom ready to receive carpet and feature wall covering

THIRD FLOORReliance House, 20 Water Street, Liverpool


Stairwell and landing wet plaster


Third Floor Progress [22.11.17]

Corridor walls

plastered

Ceiling decorated

light fittings

installed

Corridor floor screeded



Apt entrance

doors and furniture

Laminate flooring



Apt second fix electrics

and smoke

detection

Final installation kitchen units

with splashback



Electrical demister pad installed ready

to receive wall mirror

Bedroom decorated ready for feature wall covering and second fix plumbing



Bathroom fittings

second fix nearly

complete

SECOND FLOORReliance House, 20 Water Street, Liverpool


Stairwell and landing boarded

ready for plaster skim finish


Second Floor Progress [22.11.17]

Corridors boarded ready for plaster skim finish, first fix wiring complete

Kitchen units installed ready to receive worktop, sink and appliances



Bathrooms fully tiled, sanitary fitting installation commenced

Acoustic floor matting installed, decorations walls, ceilings and woodwork commenced



Internal doors

installed, second fix

lighting and

smoke detection

First fix electrical and mechanical complete ready for second fix



woodwork and

decorationadvanced

FIRST FLOORReliance House, 20 Water Street, Liverpool


Stairwell and landing boarded

ready for plaster skim finish


First Floor Progress [22.11.17]

Corridor walls

boarded first fix electric

and mechanical complete ready to receive

suspended ceiling

Bathroom tiling and sanitary fitting installation commenced



Internal Apt doors

and woodwork advanced, decoration and floor finishes

comenced

Kitchen units loaded ready for installation, internal doors hung



Tanking installed to

En-suite floor, IPS

framework to secure sanitary

appliances

Bedroom decorations advanced, room ready for second fix electrics and heating



Bedroom walls and

ceiling plastered ready for

decorationfirst fix electric

and heating

complete

GROUND FLOORReliance House, 20 Water Street, Liverpool


Entrance lobby underway


Ground Floor Progress [22.11.17]

Corridor partition

walls formed

ready for insulation

and plaster board



Partition walls

insulated ready for

plaster boarding

Apt first fix

electrics heating

and plumbing complete

Structural partition wall first fix electrics and insulated ready for plaster boarding



Suspended ceiling

framework and first fix

electrics ready

plaster board

Mechanical services installation

progressing throughout corridors



Electrics plumbing

and heating

services to corridor

walls and ceilings

Mechanical ventilation services

installed to Apt ceilings



External walls

prepared to receive insulation upgrade



Plaster finishes

comencedto ceilings and walls

Insulation upgrade

applied to external

walls