Development and planning agreements serve as the foundation for collaboration between parties involved in a construction project.
These contracts outline the anticipated roles and responsibilities of various stakeholders. Whether it be developers, purchasers, funders, landowners, or tenants, development agreements serve as the guiding blueprint, delineating the expectations that each party is entrusted to fulfil.
At Martin Shepherd Solicitors, we believe in the power of precision and clarity within these agreements, ensuring a seamless journey from conception to completion. We can advise you on development and planning agreements at our Potters Bar, Hertford, and Finchley offices.
Characteristics of Development Agreements
The collaboration between the landowner and developer takes centre stage within the framework of a development agreement. Typically, it involves the developer:
- submitting the planning application
- liaising with the local planning authorities
- securing planning permission
- overseeing construction
- sharing the end profits with the landowner.
Assuring the landowner on crucial matters, such as the project’s timeline and their ability to raise objections during the process, becomes paramount.
Development and planning agreements with Martin Shepherd Solicitors:
We offer development and planning agreement services tailored for both landowners and developers. Our array of services encompasses:
- Ensuring meticulous negotiations to secure agreements that comprehensively safeguard your interests.
- Crafting bespoke contracts meticulously tailored to the specifics of your unique construction project.
- Swiftly resolving disagreements to eliminate obstacles, guaranteeing smooth and uninterrupted progress for your construction project and planning process.
Learn more about development and planning agreements at our Finchley, Potters Bar and Hertford offices. Contact us at 0208 446 4301.
Safeguarding Interests through Development Agreements
A development agreement serves as a protective shield for both parties. While granting the developer the authority to execute the construction project, it also affords the landowner a voice in the development process. This arrangement becomes particularly significant if the landowner holds interests in adjacent land.
The document should outline mechanisms for resolving disputes, a vital component that can prevent complications and avoid unnecessary delays.
Development agreements often encompass a range of obligations imposed on the developer, aiming to establish a clear framework for the project. Developers must:
- Execute the specific development in alignment with the mutually agreed plans and specifications by the local authorities.
- Secure collateral warranties from contractors and consultants.
Other obligations commonly include:
- Quality Assurance Provisions
Development agreements often incorporate provisions designed to guarantee the quality of the development. This safeguards against substandard work and ensures the outcome meets predefined standards and planning obligations.
- Letting Obligations
Specifying minimum criteria for prospective leases, developers outline their letting obligations. This may include attaching an agreed form of lease that provides clarity and structure to potential lease agreements.
- Timetable for Development
A well-defined timetable, inclusive of a longstop date for project completion, is a standard inclusion. This establishes clear milestones and deadlines, ensuring timely progress.
- Inspection and Monitoring Rights
Purchasers or tenants often have the right to inspect and monitor the progress of the development. This transparency ensures parties stay informed throughout the project lifecycle.
- Termination Provisions
Developers may face termination by purchasers or tenants under specific circumstances, such as serious breaches, failure to meet longstop dates or insolvency. These provisions act as safeguards for the involved parties.
- Profit Calculation Methodology:
Development agreements often detail the method for calculating the developer’s profit. This involves a comprehensive list of deductions and triggers for payment. Including a worked example can enhance clarity, particularly in cases where the calculation is intricate.
Discover more about development and planning agreements at our Hertford, Finchley, and Potters Bar offices. Contact us at 0208 446 4301.