Forms of collaboration in real estate projects
Large amounts of money are involved in the development of real estate projects. Often the amounts are so substantial that it is virtually impossible for one single party to afford this. In addition, it can be a good idea to spread the risks of the entering into of property development projects. For those reasons there are various forms of cooperation possible between private and public parties. The three most common forms of cooperation in property development projects are design & build, public-private partnership and property development projects agreements.
Design & Build
In the design & build structure, the design and the implementation of the project are integrally contracted out to one party within one contract. The client, for example a municipality or school board, remains in this case the financier and proprietor. They are responsible for the maintenance and the technical upkeep of the building. The parties involved in the design & build form of cooperation work jointly and at the same time on the same overarching objective. The advantage of design & build is that there is less interim transfer of information and less interim phases in which new contracting and invitations to tender are necessary.
AK Advocaten can advise and represent you and take care of your interests in order to achieve an optimal result by means of a design & build structure.
Public-Private Partnership (PPP)
In case of public-private partnership there is a long-term cooperation - often 20 or 30 years - between the government and companies in property development projects. The government subcontracts the design, the construction and the maintenance to a contractor, often a consortium comprising of various parties.
The most common form of PPP is Design, Build, Finance, Maintain and Operate (DBFMO). All these parts form one joint project and are transferred in one contract by the government as client to the contractor. The contractor is responsible for the financing of the project and will be paid by the government for the goods or services provided. In case of a form of cooperation such as PPP, high-quality legal assistance is of great importance, since there are many special aspects and risks attached to this. The property specialists of AK Advocaten focus on your interests during the choice of form of cooperation. We can explain the opportunities and pitfalls of the various forms of cooperation, including DBFMO to you, and advise you about this.
Property development agreements
In addition to the Design & Build and the PPP, in particular the DBFMO, structures, there are also other forms of cooperation for property development projects which can be recorded in an agreement.
During the development of a property development project, it is important that all arrangements between the parties are formulated and recorded at the earliest possible stage due to the large interests involved. A proper contract in advance prevents unnecessary discussion afterwards.
Our property lawyers are familiar in detail with the various forms of cooperation. It not only thereby concerns the recording of arrangements between private parties, but also with semi-public bodies and authorities, such as the municipality. We also have specific knowledge and experience in advising care institutions and the market they serve. For example, the development of residential care associations. If necessary, we can bring legal proceedings in case of construction disputes.
Lastly, one of the aforesaid forms of cooperation cannot be used in all projects, because the project must be put out to (European) tender
. It also applies to this specialist field of expertise that we can assist you expertly and accurately during the entire process and provide you with thorough advice.
Please contact us.