Step 2a - Before any buildings or sites are identified, the UNCT should first inquire with the host Government for assistance in providing rent-free premises. Only in case that the Government cannot offer cost-effective premises, may the UNCT explore other alternatives.
In considering the options, the TTCP strongly advises against full-scale construction projects, as they are complex in nature and prone to significant cost escalations. The UNCT should only consider such projects when no suitable commercial buildings are available. Please see the decision tree here. When looking at a renovation option of an existing, Government-donated building, it is important to establish and confirm which party is responsible for renovation - the UN or the host Government? If it is the Government's responsibility, the scope of works should be outlined in a Memorandum of Agreement (MOA). Please see Phase 1 step 5 for more information. When it is the landlord/proprietor's responsibility, the scope of works is specified in the lease agreement. Please refer to Phase 1 step 5 for further details. The TTCP requires the submission of official documents indicating the host Government is unable to provide suitable premises. Construction projects require a market survey that testifies that no suitable commercial buildings are available. In order to save costs, the UNCT may want to consider conducting the Real Estate Market Survey themselves, or alternatively delegate this task to a Project Manager (PM), hired for that specific task. The TTCP notes that the PM represents the interests of the UNCT; consequently s/he should be independent from any potential developer/financing firm. For more information regarding the Project Manager and for a template TORs, click here During the feasibility study phases of the project, the PM is to be funded locally, while Project Management fees for the design and construction phases may be elligible for funding from the TTCP. |
Conduct a Real Estate Market Survey of commercial real estate objects to determine the possibilities and average price of buildings. Buildings should be evaluated based on several different criteria: e.g. rental rates, operational costs, condition of the building, amenities, location, etc. In the survey, the UNCT would assign the selected buildings to three categories (i.e. low-end, medium and high-end) to determine the average price per category. The abovementioned evaluation factors differ from project to project and form the basis for a decision on which building to choose. These elements of the decisions criteria are further defined in a later stage in the proces, during the cost/benefit analysis (CBA), Phase 1 step 3. The Real Estate Market Survey forms part of a feasibility study. For construction projects in general, a Real Estate Market Survey is required testifying on the non-availability of suitable commercial buildings. |
Once the Real Estate Market Survey has been conducted and several have been identified, it is time to narrow the choice down to three preferred buildings/sites. At this stage, the UNCT should engage the UN Department of Safety & Security (DSS) Field Security Coordination Officer (FSCO) in assessing all three sites for safety & security and provide recommendations as to what is required to make the premises MOSS compliant (Minimum Operating Security Standards). The FSCO may provide input on the cost estimates of security measures, which should then be incorporated in the cost/benefit analysis (CBA). For more information on the CBA, please refer to Phase 1 step 3. In essence, a detailed assessment of each option is done by reviewing the recurring costs (rental, operating, etc.) accounting for any additional foreseen costs, such as the one-time fit-out costs, costs of envisaged construction, management fees, etc. Determine the extent of the construction/renovation works necessary to accommodate all Agencies according to the UN Joint-Inspection Unit (JIU) Standards. Please click here for more information. You should also take into account the costs of moving into the building. Costs should include: a) construction or renovation; b) a range of one-time fit-out costs, including the costs of move-in, furniture, etc.; c) security-related items; and d) recurring costs. When evaluating a potential real estate site in terms of recurring costs, it is important to align the costs of operating the building with each Agency's Country Programme & Budget. As the scope of renovation/construction works tends to be extensive and complex, the UNCT is strongly encouraged to consider hiring the services of a qualified Architect/Engineer (A/E). Please note that this expert is to be funded locally. Please note that any renovation/construction works need to address all infrastructure required. Click here for an outline of 'Performance Specifications for Office Environments and Site Facilities'. This should then be tailored and fleshed out by the A/E responsible for the design and specifications. First establish and confirm that it is the UN's responsibility to renovate, rather than the Government or proprietor. If the Government is responsible, then the scope of the renovations works is confirmed in the MOA (Memorandum of Agreement). If the proprietor is responsible, the scope should be confirmed in the lease. With the costing estimates from the A/E consultant, the UNCT will have a more complete picture of the total costs of each of the three options. It is ultimately the UNCT's responsibility to choose one preferred option out of the three identified options. The TTCP can only advise in this matter. The TTCP may undertake missions to assist in evaluations once one option has been identified and a Project Manager is onboard. |