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Appointment of Redevelopment Project Management Consultants (PMC) – Times of India

Wednesday, May 11th, 2011

An Article by Times of India http://www.timesofindia.com

In case you society needs redevelopment consulting / PMC please write to us on contact@redevelopmentpmc.com or call us +91 98335 45366

A KEY ROLE

The appointment of a project management consultant lays down the foundation of the entire redevelopment process.

As a co-operative housing or premises society initiates the process of redevelopment of its property,the first legal requirement it needs to fulfill in terms of the relevant circular of the department of co-operation is the appointment of a project management consultant (PMC).

The appointment of a PMC lays down the foundation of the entire redevelopment as successful completion of redevelopment largely depends upon the ability,integrity,uprightness and transparent and reasoned approach of the PMC.

The PMC should be knowledgeable on all legal and construction aspects of the redevelopment and should be aware of the redevelopment business so that he applies his knowledge and imagination to various stages of redevelopment in a manner that the society gets the best terms without compromising with safety aspects.

Although the nature and quantum of redevelopment services to be provided by a PMC would differ from case to case,a generalised model list is presented below as prepared on the basis of experience of PGV Project Management Consultants.

A society may select all or any of the services depending upon facts of its case and after interaction with the PMC.

Preparation of the feasibility report in respect of the subject property.Taking steps for conveyance in favour of society.Invite and receive offers from interested developers and present the same before the managing committee with recommendation about selection.

The recommendation report to be speaking and reasoned one.Draft of tender document or offer form in consultation with the society.Such draft should also be given to interested members of the society who may like to invite the developers in their respective contacts.A newspaper advertisement,if considered necessary,should be drafted in consultation with the managing committee.The PMC to analyse the tenders analysed and to apprise the managing committee about such analysis.Interested developers may seek clarifications from PMC.To each intending developer submitting the tender or offer form,the PMC should issue an acknowledgement receipt.The best of financial terms including corpus fund,larger area flats for each member,hardship compensation,rental compensation at prevailing market rate with due increment in case of rental market going up,best of amenities,strict legal terms in documentation,flexibility on the part of the developer to meet peculiar needs of the society and its members should be some of the prominent criteria for selection of developer.

The managing committee should tentatively select the developer on consideration of the recommendation by the PMC and the general body meeting should take a final decision on selection of the developer.Offers should be submitted by all the developers in a standard tender or offer format to allow comparision.The PMC should draft the Letter of Intent/Appointment on consideration of legal implications thereof.The PMC should co-ordinate with the office of registrar of co-operative societies in respect of the redevelopment process and should draft correspondence,papers and documents to be submitted to the office of the registrar in connection with redevelopment process.

Drafting of redevelopment documents as per society instructions and in consideration of applicable laws including MOFA,1963,MCS Act,1960,Transfer of Property Act,1882 and other property laws,laws and regulations concerning developments and constructions,bye laws of the society.Drafting documents on consideration of income tax,VAT,service tax laws.Drafting/amending bank guarantee.Drafting power of attorney.Drafting individual agreement for each member.Vetting TDR documentation from legal and taxes point of view.

Provision of services of the architect,engineer,chartered accountant,advocate in the matters connected with the process of redevelopment.As may be needed,attending meetings of members to explain and/or to interact with members.Filing of income tax returns of the society for the years during which redevelopment project continues.Manner of disclosure of benefits of redevelopment in individual income tax returns of the members in the relevant years,at the request of the member.Drafting correspondence on behalf of the society with architect,municipal authorities and others in relation to redevelopment project.Drafting various circulars and letters and resolutions for the society in relation to matters connected with redevelopment project.Drafting documents should be in an absolutely transparent manner.PMC services should primarily be in the nature of consultation and suggestions.Drafting of documents should also done after thorough discussion of the issues at stake
and after considering views of the society and after explaining PMC’s views.Ultimate decisions should be left upon the society.The PMC should help the society in the decision- making process but  should not insist that the decisions be taken only in
the manner it wants.
Redevelopment is a subject wherein lot of misconceptions lie;wherein a lot of public concern lies.Drafting of iron-clad documents is the single most important aspect in any redevelopment and the PMC should be able to assure that as far as redevelopment documentation is concerned,any member can compare the same with that of any other society and the member will himself be able to satisfy that documentation is the safest and takes care of every interest of the individual member as well as the interests of the society apart from taking care of the safety of committee members.
Drafting of the tender form or offer form should be such that only developers with merits and commitment would come forward as the drafting would clearly convey the message that the draftsman knows construction laws,property laws,stamp duty,registration laws,revenue laws,regulatory provisions and more importantly the draftsman knows the possible wrongs in the redevelopment projects and the necessary plugs to prevent such possible wrongs.Before accepting an assignment,the PMC should understand the society’s expectations and should explain the exact role that the PMC would perform in a particular project.PMC appointment should be under proper documentation.
Nothing speaks better than actual work.

QUICK BYTES

 

THE FIRST LEGAL REQUIREMENT A SOCIETY NEEDS TO FULFILL IS THE APPOINTMENT OF A PROJECT MANAGEMENT CONSULTANT

 

PMC SERVICES SHOULD PRIMARILY BE IN THE NATURE OF CONSULTATION AND SUGGESTIONS

COMMITTEE ISSUES

FOR ALL LEGAL PURPOSES,THE MANAGING COMMITTEE IS HELD RESPONSIBLE

In 2007 our society decided in favour of redevelopment.The managing committee consulted an architect and evaluated various aspects.At the AGM in 2008,a decision was taken in favour of self-redevelopment.However,some members favoured the builder option and called for a special General Body meeting,which constituted a redevelopment committee to assess the builder option.This committee started communicating directly with the members stating that being constituted by the General Body it is answerable only to members.Please clarify what is the role of the managing committee in the functioning of any such committee constituted by the General Body for a specific purpose.D.S.Katoch

Whenever a redevelopment committee or sub-committee is appointed,the Managing Committee (MC) has to prepare a set of rules and regulations for the functioning of such committees.The rules and regulations of the sub-committee normally should consist of the following points at least: – How the committee will be constituted by general body or by conducting the election.- How many members will be accommodated,whether wing-wise or floor wise representation will be done.- How many members of the committee will be part of the Redevelopment committee or all the MC members will be part of Redevelopment committee.- What are the rights,privileges,dues and the responsibility of such Redevelopment Committee.Whether they are required to sign a bond similar to M-20 bond which normally the committee members have to sign.- Whom such redevelopment committee will report to.How many times the committee will function.- Whether the redevelopment committee gets dissolved on the dissolution or on the expiry of the term of the managing committee or to continue till the redevelopment is completed.- Other issues pertaining to the respective societies.Once the draft rules and regulations of the Redevelopment Committee is prepared,the same should be sent to all the members including the registrar of cooperative societies.Get the same approved in the specially called general body meeting and then constitute the committee as per the rules.From your questions,it is clear that you have not formed such rules and now there is rift between two committees formed.Legally and ideally the Redevelopment committee should report to the MC and the same should be discussed in the General Body meeting.Redevelopment committee directly dealing with members or bringing the matter directly in the General body is not desirable at all and is not legally correct.For all legal purposes,it is the elected Managing Committee who is held responsible and accountable and not the redevelopment committee.Therefore,you will notice that there is no mention about the constitution of the Redevelopment committee in the Government Order dated 3.1.2009 issued for the purpose of redevelopment process to be adopted by the Housing Societies.

http://www.redevelopmentpmc.com

IOD – Intimation of Disapproval

Sunday, May 8th, 2011

Incase you need consulting/assistance in your society redevelopment procedure do email us on contact@redevelopmentpmc.com or +91 98335 45366

To avoid disaster in the process of redevelopment of hosing society in Mumbai interpretation of law is important

Today society are opting for redevelopment in which the builder provides them extra carpet and larger rooms by taking the benefits of FSI using TDR and construct additional residential and commercial and earn monetarily  

Most important aspect arises at the time when existing building of the society is demolished on the basis of IOD (Intimation of Disapproval)

An IOD is issued based to developer after the redevelopment plans are submitted to the Building Proposal Department of BMC , The developer needs to comply with many requirements obtain various clearances from Environment Authorities, Tree Authorities, Fire Officer etc. Only after the clearances are obtained, the developer gets a commencement certificate (CC)

All these clearances are necessary before getting the cc and after getting the IOD

If the developer fails to get all these clearances the construction cannot commence

However it is seen that the buildings are demolished on the basis of IOD even when major clearances are not obtained.

Stages of Redevelopment Rules and Regulations

Sunday, May 8th, 2011

REDEVELOPMENT RULES & REGULATIONS

  Old Building Redevelopment Rules & Redevelopment Regulations:

STAGES OF REDEVELOPMENT

1. Offer letter to the society

2. Terms and conditions with the society

3. Agreement with the society

4. Sanction from MCGM in favour of the society

5. Loading of TDR in the society’s name

6. Obtaining the IOD

7. Shifting of the members

8. Demolition of the building

9. Obtaining the CC

10. Construction of the new building

11. Obtaining the OC

12. Shifting the old members

Offer letter to the society:

The Housing Society is required to advertize in 2 leading news papers inviting the sealed tenders from the Developers and a Redevelopment Committee is formed to shortlist atleast 3 Developers on merits and the comparative data is placed before the SPGM for final selection. The selected Developer is informed accordingly and his terms are invited in writing as an Offer letter to the society

Terms and conditions with the society:
The first step towards the re-development is agreeing on the basic terms and conditions between the members and the Developer. The broad terms and conditions will include extra area, corpus money, shifting charges, alternate accommodation, time of re-development, amenities in the new building, etc.

Finalizing the plans with members:
After due consultation with all the members, the plan will be made to suit the requirements of the existing members and will be approved by them before applying for sanction from MCGM

Agreement with the society:
The execution of the development agreement will be done once the above two points have been cleared by both the parties and after the draft copy of the agreement have been approved by the solicitors of both the parties. It is possible to appoint a common solicitor so as to reduce the time in execution of the document

Sanction from MCGM in favor of the society:
After the execution of the development agreement, plans are put up for sanction from MCGM with regards to the entire layout as well as the concession plans in favor of TWO FSI (i.e. plot area + TDR purchased from open market). This step makes the society feel safe and confident towards the Developer

Loading of TDR in favor of the society:
On receipt of the plans from MCGM approving the loading of TDR, the Developer will purchase the TDR from the open market in the name of the society and get the same deducted and loaded from MCGM. This step is taken with the intention of making the society feel secure about the entire development process

Obtaining the IOD:
After the TDR is loaded, the IOD is obtained from the MCGM, the Developer then starts fulfilling all the conditions as mentioned in the IOD before obtaining the Commence Certificat

Shifting of the members:
The members will feel lot more confident after the IOD is been obtained from the MCGM towards the entire development of TWO FSI. The members will now shift into their alternate accommodation as a pre-requisite before demolition of the building which is a must before obtaining the CC from MCGM

Demolition of the building:
Once the members have shifted into their alternate accommodation, the demolition of the building will take place either all the wings simultaneously or phase wise depending upon the scheme of re-development. Usually about three months are given to the members from the date of execution of the development agreement before asking them to shift to the alternate accommodation

Obtaining the CC:
The IOD approval and demolition of the building will be followed by the issue of the CC (plinth level) by the MCGM which shall enable the Developer to start the construction work and after the plinth lines are verified by the MCGM officers, the further CC is granted for the complete building

Construction of the building:
The building construction work will began in full earnest as per the approved plans by the MCGM taking into consideration the various safety factors to be considered during the construction work. The quality and the amenities will be provided as per agreed terms and conditions

Obtaining the OC:
The last step before the construction work is termed as complete is obtaining the Occupation Certificate enabling the Developer to allot the occupation to the old as well as the new member

Shifting the old members:
On receipt of the Occupancy Certificate the Developer can lawfully allow the possession of the flats to be taken over by their owners

DUTIES AND FUNCTIONS OF THE DEVELOPER

1. The Developer to demolish the building existing in the plot and construct new multi storied buildings taking into account the earthquake resistant factors as directed by The Municipal Corporation of Greater Mumbai. The new building should have stilt for car parking and should consist of _____ stories as per approved plans. The final plans are to be prepared after due consultation with the managing committee and understanding their requirements.

2. The Developer shall be responsible to obtain all the necessary approvals from The Municipal Corporation of Greater Mumbai and all other statutory and Government offices and departments which will include:

1.Development Planning Remark or Town Planning Remark:

MCGM (Dev. Dept.)

2. Survey of the entire plot with regards to the area and topography of the plot, existing plot boundary and existing structures (Developer’s Architect)

3.Intimation of Disapproval (IOD): MCGM

4.Property Tax Assessment NOC: MCGM (Assessment Department)

5.Hydraulic Engineer No Objection Certificate: MCGM (Hydraulic Department)

6.Storm Water Drainage No Objection Certificate: MCGM

7.Sewerage No Objection Certificate: MCGM

8.Traffic Deptt. of Municipal Corporation of Greater Mumbai No Objection Certificate: MCGM

9.Urban Land Ceiling NOC: Competent Authority in Collector’s Office

10. Tree No Objection Certificate: MCGM (Tree Authority)

11.Non-Agricultural Permission: Collector’s Office

12.Civil Aviation No Objection Certificate: Airport Authority of India

13.Pest Control No Objection Certificate: MCGM (PCO)

14.MTNL No Objection Certificate: MTNL

15.Chief Fire Officer’s No Objection Certificate: Fire Department Office

16.Commencement Certificate: MCGM

17. Lift Inspection No Objection Certificate:Inspector of Lifts, PW

18. Occupation Certificate (OC):MCGM

19.Water Connection Certificate under section 270A:MCGM

20.Drainage Completion Certificate:MCGM (Water Department)

21.Building Completion Certificate (BCC):MCGM

22.TDR Loading:MCGM

23.Building Demolition Work:Contractor appointed for demolition work

24.Soil Testing Report:The Concerned Laboratory

Please ensure to collect all the listed certificates from the Developer/Developer as the same must be with the custody of the Housing Society once the redevelopment of the property is completed and the occupancy certificate is issued by MCGM to rehouse the members.

3. The Developer should provide the following infrastructure after the completion of the re-development work:

a. Complete paving around the building finished with suitable materials

b. Storm Water Drain

c. Sewerage lines

d. Security arrangements

e. Garden and landscaping (wherever possible)

f. Pipe gas line (as per availability)

g. Internet facility (as per availability)

h. Society office

i. Adequate car parking spaces

The Developer has to provide extra areaover and above the existing carpet area to all the members free of cost in the newly constructed building. The flower bed as open balcony area should be provided as permitted by The Municipal Corporation of Greater Mumbai. (Area will be approx sq.fts.)

4.The Developer should pay the society/individual member, a corpus fund of Rs……..towards granting of development rights. The above amount is helpful in paying all outgoings of the existing members in the newly constructed flats. The corpus amount is worked out on the basis of Rs……..per sq.fts on the existing carpet area.

5.The Developer should provide displacement compensation towards temporary alternate accommodation to the affected members during the construction work at the rate of Rs…… per sq.ftson the existing carpet area. The compensation has to be paid from the time the vacant possession is given by the members for demolition till the construction of the new building/s is/are complete and the peaceful possession of the new flats given by the Developer.

6.The society shall accept and admit the prospective/additional flat owners of the newly constructed building/s as members of the society and treat them at par with existing members.

7.The Developer should prepare a tentative layout of the new building which has to be shown to the members as and when required.

8.The Developer may tie up with leading financial institutions and banks and arrange for necessary approvals for housing loans for the existing members and prospective clients.

9.The Developer should complete the entire re-development work within a period of ___ months or as agreed with the Society after all the legal formalities and Municipal approvals are obtained. The initial Municipal approvals will take about three months depending upon the existing rules and regulations governing the re-development work.

STANDARD LIST OF AMEMITIES

Structure:The structure would be designed as Multi Frame Structure of RRC with provisions of Earth Quake resistance features.

Elevation and Planning:Exquisitely designed elevation features may be provided along with careful and detailed planning with plenty of light and ventilation in each rooms and minimum wastage space with proper co-ordination of all rooms. The building may be provided with sand faced plaster on the external face water proofing plaster and chicken mesh should be used as required

Entrance Lobby:The entrance lobby may be elegantly designed with Granite tile and POP false ceiling.

Doors: All the doors should be provided with Marine Flush Doors and CP frame with cover mouldings. The main door must be provided with good quality night latch, safety chain, tower blot and attractive handle. Internal doors may be provided by cylindrical mortise type locks.

Windows:All the windows of rooms and toilets should be provided with marbles frames with designed mouldings. Heavy section powered aluminum sliding windows with 5 mm tinted glass may be provided with imported bearings and fittings.

Plaster of Paris:Beautifully designed cornice has to be provided in living room. Walls of all the rooms to be finished with POP panning and grooves to be provided on top of the skirting

Electric work:All the electric wiring work must be done as per the norms of Reliance Energy using 1/18, 3/20, and 7/20 flexible wires with use of MCB and ELCB for safety of the flat owners. Latest available switches of reputed company must be provided. Extensive electric layout comprising of the following points to be provided:

Spot Lights (living room and bed room)

Tube lights

Fans

A.C. (living room and bed room)

Geysers

Exhaust fans

Aqua guard

Mixers

Washing machine

Refrigerator

T.V. cable

Gas pipe line (if available)

Refrigerator

T.V. cable

Gas pipe line (if available)

Plumbing:All the plumbing pipes, fixtures and fittings should be strictly as per IS Norms. CP plumbing fixtures (ESS ESS or JAGUAR) should be be provided in all toilets with matching sanitary ware of reputed company. Plumbing points should comprise of wall mixtures, showers, taps, washing machines and aqua guard.

Flooring and Tiling: Marble or granite or granite flooring should be provided with matching skirting of 3”. Toilets should have full dado height of coloured glaze tiles of reputed company of Indian or imported make with designer borders and motifs.

Kitchen:Granite kitchen platform comprising of cooking and serving platforms may be provided with moulded facia patti and vertical sides. Stainless steel sink has to be provided.

Colour:The entire flat should be painted with Synthetic enamel paint including doors and ceilings. The external walls of the buildings must be painted with good quality cement paint.

Lift:Lift of OTIS/Johnson make may be provided with all the safety features.

Terrace: The terrace should be finished with china chips and high parapet wall with corner lights and water points.

Compound wall and gates: New compound wall should be constructed with proper design and sufficient electric points.