Project Pi Due Dilegence

CASE STUDY

PROJECT TYPE: Developer Due Diligence, Site Selection & Lease Negotiations

OVERVIEW: Our client engaged CLB Consulting to conduct a comprehensive due diligence process for a potential developer to ensure their capability to deliver a major project within the specified timeline and quality standards. Additionally, we conducted site due diligence to confirm compliance with both client and local municipal and state codes. Our involvement extended to negotiations with the developer, ensuring all identified issues were addressed in the lease agreement.

KEY OBJECTIVES:

• • Confirm developer capability to execute major works and meet client deadlines.
  • Identify necessary building upgrades and incorporate them into lease negotiations.
  • Ensure all due diligence findings were captured and mitigated in the contractual agreements.

APPROACH:

1. 1. DEVELOPER DUE DILIGENCE: We conducted an in-depth evaluation of the developer’s capabilities, focusing on their experience with major works and upgrades, as well as their ability to meet client deadlines. This due diligence provided a clear understanding of the developer’s strengths and areas requiring attention.
   2. SITE DUE DILIGENCE: Our team performed a detailed site due diligence to confirm compliance with both client and local municipal and state codes. We identified necessary building upgrades and quantified the scope of work and estimated costs, ensuring all relevant information was included in lease negotiations.
   3. NEGOTIATIONS AND CONTRACTUAL SAFEGUARDS: Based on the due diligence findings, we engaged the developer in negotiations to ensure that all identified issues were properly captured in the lease agreement. This included outlining work scope, durations, and consequences of delays, with related Liquidated Damages (LDs) to protect the client’s interests.

RESULTS & IMPACT:

• • USD 2.3M Savings: Through thorough due diligence and negotiations, we realized USD 2.3 million in savings for the client by ensuring that developer-required upgrades were contractually secured.
  • Clear Work Scope and Timeline: The due diligence process clearly outlined the work scope, timelines, and consequences of delays, providing a solid framework for the project’s execution.
  • Quality Assurance in Execution: We monitored the developer’s performance throughout the project, taking necessary actions to ensure that all upgrades and works were completed to the expected quality and within the agreed timeline.

These case studies highlight CLB Consulting’s expertise in managing complex real estate projects, ensuring that all aspects—from developer selection to construction monitoring—are handled with the utmost care and precision to deliver successful outcomes for our clients