New Everton Stadium

[nevsonlymate]

I remember whwn Dan Meis si he took inspiration from structures like the front of Lime Street Station. I really see that comparison with the North Stand structure in that image.

Looks like a very large Cargo ship just pulled in for off loading

 

[Jamiednm]

sounds great,, oh wait we’d still be in the champ

But with our new-found riches, we would shoot straight back up to the Prem and be competing for 8th-9th again. Good times ahead!

 

[Neiler]

A 50 mill contingency mate.

I still think there is much we dont know about the costs, id like to see the detail of the much publicised deal with Laing the club announced. I thought it was cleverly worded, it didnt say they locked in "fixed costs" but had "greater certainty" around costs. Perhaps this a mechanism around inflation.

To be honest i dont see any contractor (let alone Laing) worth their salt out there giving a project fixed pricing currently as the steel and concrete market are so volatile at the moment perhaps the agreement is a fixed inflationary adjustment of %.

Dont mean to be a downer about the deal agreed, but if a deal is to good to be true it usually is, despite the publicity around it, cant help but think its less about fixing the cost and more about agreeing the % of how much the costs can increase in a volatile market.

Posted this back last April after Denise was on about the deal on the construction costs.

There was never any way it was a fixed cost deal and that is not actually what they said.

Be a stuoid contractor that locks in cost, any time and certainly in the environment of the last 3 years and Lang aren't stupid.

 

[Jacko93]

Posted this back last April after Denise was on about the deal on the construction costs.

There was never any way it was a fixed cost deal and that is not actually what they said.

Be a stuoid contractor that locks in cost, any time and certainly in the environment of the last 3 years and Lang aren't stupid.

The deal was/is a GMP deal, (Guaranteed Maximum Price). This is not at all uncommon in the industry as it gives certainty on both sides of the agreement.

The only thing I find a bit odd in all of this, is the "Denise negotiated" bit, as LoR would have bid on the project with knowledge of the contractual terms prior to winning it.

GMP doesn't mean that the price will never increase, it simply means that you will not pay more for the project than what has been laid down during Stage 4, technical design. If a client makes changes after the completion of Stage 4 (we are now in stage 5 - construction), the client is liable for all costs that are incurred due to that change (plus X%). It is a way of ensuring that the contractor strive for efficency and value rather than just cracking on and chucking a bill in at the end. Often, you will also find as part of these contracts that a Contractor is limited to profit return. If LoR sign at £500m GMP, but deliver at £400m, they cant simply claim X% profit, as it will be capped and the rest returned to the client. No idea what their cap will be, but as part of a Sub-co team on a number of projets, we woud aim typically for 3% at pricing and deliver at a max of 6%. (I would expect LoR to be in higher than this as Main Contractor.

 

[Neiler]

The deal was/is a GMP deal, (Guaranteed Maximum Price). This is not at all uncommon in the industry as it gives certainty on both sides of the agreement.

The only thing I find a bit odd in all of this, is the "Denise negotiated" bit, as LoR would have bid on the project with knowledge of the contractual terms prior to winning it.

GMP doesn't mean that the price will never increase, it simply means that you will not pay more for the project than what has been laid down during Stage 4, technical design. If a client makes changes after the completion of Stage 4 (we are now in stage 5 - construction), the client is liable for all costs that are incurred due to that change (plus X%). It is a way of ensuring that the contractor strive for efficency and value rather than just cracking on and chucking a bill in at the end. Often, you will also find as part of these contracts that a Contractor is limited to profit return. If LoR sign at £500m GMP, but deliver at £400m, they cant simply claim X% profit, as it will be capped and the rest returned to the client. No idea what their cap will be, but as part of a Sub-co team on a number of projets, we woud aim typically for 3% at pricing and deliver at a max of 6%. (I would expect LoR to be in higher than this as Main Contractor.

Thanks mate, ill bow to your experience.

Do we know its a GMP for certain?

Would the margin for the nature of the deal go from the reported 500 mill to £760 mill given escalating costs?

 

[davek]

The deal was/is a GMP deal, (Guaranteed Maximum Price). This is not at all uncommon in the industry as it gives certainty on both sides of the agreement.
The only thing I find a bit odd in all of this, is the "Denise negotiated" bit, as LoR would have bid on the project with knowledge of the contractual terms prior to winning it.
GMP doesn't mean that the price will never increase, it simply means that you will not pay more for the project than what has been laid down during Stage 4, technical design. If a client makes changes after the completion of Stage 4 (we are now in stage 5 - construction), the client is liable for all costs that are incurred due to that change (plus X%). It is a way of ensuring that the contractor strive for efficency and value rather than just cracking on and chucking a bill in at the end. Often, you will also find as part of these contracts that a Contractor is limited to profit return. If LoR sign at £500m GMP, but deliver at £400m, they cant simply claim X% profit, as it will be capped and the rest returned to the client. No idea what their cap will be, but as part of a Sub-co team on a number of projets, we woud aim typically for 3% at pricing and deliver at a max of 6%. (I would expect LoR to be in higher than this as Main Contractor.

What changes have been made to the required build for the sum to now be at £750M?

 

[Look to the future]

What changes have been made to the required build for the sum to now be at £750M?

It now 65k + 10k safe standing ?

 

[Muggins]

Posted this back last April after Denise was on about the deal on the construction costs.

There was never any way it was a fixed cost deal and that is not actually what they said.

Be a stuoid contractor that locks in cost, any time and certainly in the environment of the last 3 years and Lang aren't stupid.

Don’t mortgages lock you in with banks for 3-5 years at fixed rates?

Wouldn’t surprise me if building companies did too.

But I agree anything like that is high risk at the moment to say the least.

 

[matty1878]

But with our new-found riches, we would shoot straight back up to the Prem and be competing for 8th-9th again. Good times ahead!

ha ha it’s us

 

[Blue_Eagle]

What changes have been made to the required build for the sum to now be at £750M?

I wonder if it was literally just due to the inflated material costs during covid?

My next question would be...

Would it be beneficial for Farhad to declare an inflated figure (in terms of cost) for either tax purposes or selling the club purposes?

 

[Moomin]

they need to scrap it and use the money on staying up

To scrap it would cost even more money.

 

[matty1878]

To scrap it would cost even more money.

put it on hold

 

[TommyDavo]

put it on hold

And I thought the board had the worst ideas

 

[Furey1878]

The deal was/is a GMP deal, (Guaranteed Maximum Price). This is not at all uncommon in the industry as it gives certainty on both sides of the agreement.

The only thing I find a bit odd in all of this, is the "Denise negotiated" bit, as LoR would have bid on the project with knowledge of the contractual terms prior to winning it.

GMP doesn't mean that the price will never increase, it simply means that you will not pay more for the project than what has been laid down during Stage 4, technical design. If a client makes changes after the completion of Stage 4 (we are now in stage 5 - construction), the client is liable for all costs that are incurred due to that change (plus X%). It is a way of ensuring that the contractor strive for efficency and value rather than just cracking on and chucking a bill in at the end. Often, you will also find as part of these contracts that a Contractor is limited to profit return. If LoR sign at £500m GMP, but deliver at £400m, they cant simply claim X% profit, as it will be capped and the rest returned to the client. No idea what their cap will be, but as part of a Sub-co team on a number of projets, we woud aim typically for 3% at pricing and deliver at a max of 6%. (I would expect LoR to be in higher than this as Main Contractor.

Currently in qhe process of buying a house mate, gonna need some work doing I might just have to give you a shout

 

[BullensRoad]

Don’t mortgages lock you in with banks for 3-5 years at fixed rates?

Wouldn’t surprise me if building companies did too.

But I agree anything like that is high risk at the moment to say the least.

Everton and LOR = fixed cost

LOR and subcontractors / materials = price increases

Force majeur