The chartered building company and main contractor specialising in constructing residential developments for private developer clients, designed the product to de-risk construction in terms of cost, programme and quality (including design management) to aid clients in structuring their project financing with more certainty.
The service enables developers to reduce supply chain risks, mitigate material and labour cost rises, manage design development to eliminate clashes and design out specific bespoke elements — thus leading to reduced costs.
It also offers a detailed report for lenders which demonstrates the actions taken to avoid cost increases and programme delays.
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“We've introduced a whole range of mitigations, including design management services to simplify the buildability issues, pre-ordering of volatile materials and holding [them] off-site on a vesting certificate or on a call-off basis, creating mini frameworks with reliable supply chain partners that ensure their availability to match the client’s programme, and early supply chain engagement to secure high-value and programme-sensitive materials,” explained Cristina Chitimus, construction director at Viella Construction.
The service aims to reach cost certainty in excess of 80% on a typical project.
The price for a full pre-construction package for a £3m-4m GDV development ranges between £25,000 and £30,000.
For residential projects below £10m in value, Viella Construction can complete the de-risking pre-construction process in six to eight weeks.
Ken Drumm, commercial director at Viella Construction, said: “Many of our clients were reporting higher levels of concern among their funders focused on the delivery and construction phase of otherwise strong and viable projects, given the uncertainty in the market around pricing, availability of the supply chain and the general cost escalations evident over the past 18 months across the industry.
“We decided to do something about this and developed an accelerated pre-construction process to remove or mitigate many of these risks for our clients.”