Utilities form an important part of any development and include gas, electricity, water, sewerage and telecommunications. Here are some top tips to help you uncover some of the unknowns that may cause delays and cost you money.
Tip 1
Start looking into utilities for your development as soon as you can – even at the appraisal stage. Find out which provider is currently serving your site’s location using:
Tip 2
Contact the utility provider for a budget estimate. By providing them with details of the location, size and timescales of your development, you may be able to get a quote. Some providers will give you a budget quote free of charge. However, each company works differently so make sure you check this out first.
Tip 3
Once you have ownership of the land or property, you can make an application for a full quote. Usually there are fees applied to this service. Electricity companies may take up to 65 days to provide this quote and gas companies may take up to 21 days. It is important to note that these quotes are usually only valid for 90 days (although this may be less) and you will need to resubmit your application if you do not action the quote by paying for the works.
Tip 4
You do not have to stay with the utility provider in the area. The main provider’s quote should show what work is ‘non-contestable’ (they must complete this work) or ‘contestable’ (this work may be carried out by another company). This qives you scope to get competitive prices.
Tip 5
Any gas or electricity company carrying out the contestable work on your development must be accredited. Use the Lloyd’s Register to find out what companies are accredited under the National Electricity Registration Scheme, or the Gas Industry Registration Scheme:
Tip 6
The site’s location may add extra cost to the connection fee. Dependent on the positioning and distance of the site to the services. If the services are on the opposite side of the road, then roads may need closing for the work to be completed.
Tip 7
Water and sewage connections can be provided by the main provider, an accredited self-lay organisation or you can use your main contractor. If the development is residential, you have a right to connect to the existing public sewerage system which may require an adoption agreement. If you do the work yourself, the work must be inspected by the main provider and you will be issued with a ‘vesting certificate’.
Tip 8
If you pay for infrastructure work which creates spare capacity for water, gas and electricity which is then used by future developers, you may be reimbursed with some of your costs, dependant on the timeframe.
Tip 9
Work alongside other developers who are working in the same area to share the cost of the connection. Although the utility company should look for connections which can serve more than one development scheme, you are expected to liaise with other developers, without the utility company getting involved.
Tip 10
It isn’t just new connections that need consideration at the appraisal stage. You need to consider disconnections and also a temporary supply for the duration of the build.
ALWAYS carry out thorough research so you are as prepared as you can be! At PD Appraisals, we offer a wide range of services and support that can help you do this.
Please get in touch for more information.