Fixed Price Funding
The majority of our remediation projects are delivered at a fixed price.
We have assisted clients to assess liability issues on many sites at acquisition stage and through continual involvement with client architects, planners and engineers during the redevelopment design process we can ensure our solutions dovetail with the redevelopment objectives overall and maintain our reputation for delivery of these solutions at a fixed price.
Routinely we will deliver the works under a defined form of contract for a guaranteed fixed lump sum which is established at transaction stage. Sometimes this is index linked for a short period to recognise the protracted planning process for some sites. All have been executed successfully to the delight of our broad client base. Our clients get exactly what we promise: delivery of a remedial scheme to regulator sign off by one Company including design and validation. No difficulties between costly consultants and contractors, and independent verification should it be required to satisfy client and funder security issues.
Target Cost & Risk Share
We have delivered a number of contracts adopting target costs established by third party Consultants working on behalf of vendors or clients prior to sale or purchase. Normally we will have established a significant cost risk item that may be reduced through our direct input and delivery – thereby agreeing a cost saving/sharing mechanism with the client whereby savings are shared equally.
Since 2008 the outlook for funding many remediation projects has been extremely difficult. Wehave delivered a number of projects now that have realised cash through the delivery process and thereby assisted clients in positive cashflow and delivery of a site without inherent liability – unlocking further finance funding if required.
In Derbyshire, we helped secure alternative planning permission to incorporate open casting near surface coal beneath the site. We were able to integrate remediation and capping works with exploitation of the underlying coal reserves. Adopting this approach enabled our client to keep the majority of the remediation costs off balance sheet, creating in excess of £4m income from coal at the site.
At a former printworks, we utilised the recovery of scrap at an early stage in the demolition process to provide positive cashflow of over £480k for the client. In addition, over 250,000 cum of concrete was broken out and crushed on-site as secondary aggregates in compliance with WRAP protocols. Some of this was used in the restoration process, however Provectus also negotiated with the local Highways Authority and successfully gained approval & certification of the materials for use in the 2.4km of adoptable highways for the site. This created value in the onward sale of the site to a residential developer.
We have used cash value created from scrap recovery of key buildings at a former foundry to fund the management of fly tipped and hazardous materials left at the former foundry site. In addition, we managed to remove all the notifiable asbestos materials from the foundry buildings at zero cost to the client prior to deferring works until planning had been gained, at which stage unlocking bank funding so full works progressed with the client having added funding security due to planning gain.