THE PROJECT CYCLE

Site development is organised through a combination of both internal and external parties and is referred to as the "Project Cycle". The "Project Cycle" is well established and is broadly divided between the 'Land'; 'Build' and 'Sales' phases. The 'Land' phase incorporates feasibility, legal, planning, architecture, survey and structural engineering and the 'Build' phase incorporates demolition, construction and internal works.

The Company generally sources its own opportunities to purchase land for development. Carl Turpin is responsible for the purchase of land together with a highly experienced land buyer, Ian Fieldhouse. Susan Massingham is responsible for managing the sales and marketing and John Griggs and Paul Haines for managing the building of the properties. The legal process is outsourced to a number of solicitors. Planning, architecture and engineering are all carried out 'in-house'. The remainder of the process is outsourced.

Land phase

Land is typically acquired in three ways: sourced by the Company's officers; by personal introduction to the Company; or by introduction by agents and joint ventures. The majority of land is acquired as a result of sourcing by the Company's officers; a limited amount is introduced by agents. The land acquisition process in most instances is by conditional contract on a subject to planning basis where a minimal deposit is paid until such time as planning permission is granted. The Company then has the option to exercise the conditional contract to acquire the land and construct the homes.

Build phase

The 'Build Phase', is in all circumstances outsourced to third party contractors. This enables lower overheads and greater flexibility. The 'Build' tender process involves inviting construction contractors to submit cost quotes for individual projects on the basis of a fixed price and a fixed duration. Contractors are entirely responsible for the provision of labour and materials in line with the project specifications and are requested to provide a detailed analysis of their budgeted costs and timetable. The quotes are reviewed by the Board and contracts are signed on approval. The Company has good relationships with a number of contractors, but is not bound to any of them. All build projects are covered by a JCT Contract and Zurich 10 year insurance cover.

Sales phase

The Company appoints estate agents on each development allowing the use of the agents' resources and payment is by results only. The Company produces its own brochures in-house and arranges for well appointed show homes as required. Each development is individually designed, creating a range of new home styles for each location reflecting the environment and the surrounding areas. The Company only takes reservations from qualified purchasers and all sales are recognised strictly on completion which eliminates trade debtors.