sky-high: the role of the independent certifier in high...

Sky-High: The Role of the Independent Certifier in High-Rise Buildings – A Case Study Nicholas Ferrara, Director, Rider Levett Bucknall

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Barangaroo South - A journey……

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The Evolution of the IC Role – the before: • A Businessman • A dream • The Architect • The Builder • And the Council

Contractual Link Correspondence

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The Evolution of the IC Role – what happened? • The Businessman • A dream • The Architect • The Project Manager • The Builder • And the Council And then… • A Financier • Investors • Consultants • Tenants • A Developer

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The Independent Certifier:

• Grant Practical Completion

• Determine Variations

• Extensions of Time

• Certify Progress Claims

• Determine Disputes

• Defects that prevent use

• Cost to Complete

• Early Access for Tenants

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The Barangaroo Experience Complex, many parties! 1. The Project Agreement(s)

Developer Investors

Government Authority

Financiers

Project IC

Development IC

Financiers’ IC

Certificate of Practical Completion

Certificate of Practical Completion

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The Barangaroo Experience Complex, many parties! 1. The Project Agreement(s) – The IC

• Attend Project Control Meetings

• Time Assessment

• Assess Development Costs

Practical

Completion

• Assess Risks

• Pre-inspections and Inspections

• Documentation & Certifications

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The Barangaroo Experience Complex, many parties! 2. The Building Agreement(s)

Developer The Builder

Design Team

Sub-contractors

Design Responsibility • The Brief • Building & Planning • Standards

Installation Responsibility • The Brief • Building & Planning • Standards

Certificate of Practical Completion

Certifying Authority

Building IC

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The Barangaroo Experience Complex, many parties! 2. The Building Agreement(s) – The IC

• Attend Meetings

• Review Documents

• Certify Progress Claims

• Delay and Variation Claims

• OC, Design, Install Certificates

Practical Completion

• Inspections

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The Barangaroo Experience Complex, many parties! 3. The Agreement for Lease(s)

Developer The Builder

Certifying Authority

Design Team

Design Responsibility • The Brief • Building & Planning • Standards

Sub-contractors

Installation Responsibility • The Brief • Building & Planning • Standards

Tenant

FItout IC Fitout Certificate of Practical Completion

Fitout Designers

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The Barangaroo Experience Complex, many parties! 3. The Agreement for Lease(s) – The IC

• Early Access Handover

• Identify defects prior to handover

• Completion of Lessor’s works

• Defects that prevent occupation

Practical Completion

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The Barangaroo Experience Complex, many parties! 4. The Financier Agreement(s) – The IC

Investors Developer

Financiers

Financiers’ IC

Certification of Costs

Cost to Complete

Set Off Payments

Progress

Quality

Cash Flow

Risks Practical

Completion

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The Barangaroo Experience Complex, many parties! 4. The Financier Agreement(s) – The IC

Some light reading for the IC:

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The Barangaroo Experience Complex, many parties! 4. The Financier Agreement(s) – The IC

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The Barangaroo Experience Complex, many parties! 4. The Financier Agreement(s) – The IC

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The Barangaroo Experience Complex, many parties! 4. The Financier Agreement(s) – The IC

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The Barangaroo Experience Complex, many parties! 4. The Financier Agreement(s) – The IC

A total of 32 documents and over 6,000 pages!

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The Barangaroo Experience Complex, many parties! 4. The Financier Agreement(s) – The IC

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• Certifies work complies with Government approvals, permits & planning controls

• Private Certification and approval under the BCA

• Directing or supervising construction work, including defect rectification

• Independent Expert, Mediator or Arbitrator

• Certifying NABERS and Green Star Ratings

The Barangaroo Experience Complex, many parties! What doesn’t the IC do?

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The Barangaroo Experience Complex, many parties! How many main Agreements? • The Development Agreement with the Barangaroo

Development Authority; • Project Agreements x 3 – Towers 1, 2 and 3; • Basement Excavation and Seawall Construction; • Construction Agreements – Basement, Towers 1, 2 and 3; • Financiers’ Facility Agreements; • Side Deeds – with financiers, tenants, developer, investors

and builder; • Agreement for Leases – Westpac, Lendlease Management

Services, KPMG, Gilbert & Tobin, PricewaterhouseCoopers, HSBC, Marsh McLennan, Servcorp, David Jones, Baker & McKenzie, plus a range of other smaller commercial and retail tenants;

• Independent Certifier Deeds – with the most of the above Agreements;

• Service Agreements – e.g. Central Plant, Green Power

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The Barangaroo Experience Complex, many parties! Concluding Remarks – The IC

• Not limited to Practical Completion

• Needs to be across the details

• Multiple parties and agreements

• Provide a balance analysis

• Does not replace project consultants

• Is independent

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The Barangaroo Experience Questions and Thank you!

Nick Ferrara; Reg. Architect, CFM Phone: +61 (0)2 9922 2277 Cell: +61 (0)418 663 920 Email: nicholas.ferrara@au.rlb.com

Relevant Experience – Independent Certifier Barangaroo Development Towers 1, 2 & 3 – Development

& Building Contracts’ Extensions of Time assessments Barangaroo Development – Towers 1 & 2 Syndicated

Facility Agreement 20 Martin Place – ANZ Premises for ANZ / Horizon

Management / Charter Hall / Lend Lease / Built Student Accommodation – Darling Harbour Live for

Urbanest / Lend Lease Linc & Arc Residential Developments assessment of

Extensions of Time 121 Marcus Clarke Street (2008-2013) American Express Office, King Street Wharf ANU Student Accommodation 2, ACT Centro Polyclinic, Newcastle for Austcorp / Hunter Health /

Abigroup / ING CPSA Offices, Eden Park, North Ryde for Investa /

Commonwealth Bank DIMIA Offices – Stages 1 and 2, Belconnen for Challenger

/ NAB 161 Castlereagh Street, Sydney Darling Quarter, Sydney Darling Park Tower 2, Sydney Edgeworth Retail Complex, Newcastle 4 Residential Developments, Pt Macquarie Sydney Opera House, Total Asset Management Plan and

Heritage Risk Management Plan Keppel Land - Botanic Cove Residential Pendium Apartments, Five Dock – Defects Rectification Darling Harbour – Urbanest Student Accommodation Darling Harbour, Haymarket – Soffitel Hotel Darling Harbour & Commonwealth Bank Building Darling Harbour, Haymarket – Residential Towers

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