Case Study Qs

Question 1

What AMP was the project in and why?

Answer 1

AMP 8 (2025-2030)
Applied for early funding due to the environmental nature of the project. Construction was always to begin post Jan 2025

Question 2

What is an AMP period?

Answer 2

Asset Management Plan

5 year periods of financial regulation for private water companies, regulated by OFWAT.
Begin on 1st April on every year ending in a ‘0 or ‘5

Question 3

How can OFWAT penalise your client if obligations are not met?

Answer 3

• Likely to cover the wider Better Rivers Scheme than this one case. However…
• OFWAT review what breaches have been made and can issue fines of up to 10% of turnover.
• Regulatory settlements can also be arranged to reduce bills for customers.

Question 4

What benefits did serving notice have for your client and for the landowner?

Answer 4

Client - right of entry if refused
Landowner - protection under the act

Question 5

Did you consider injurious affection when thinking about the routing options?

Answer 5

Yes - whilst the initial thought was that CPO would not be possible as initially they wanted to begin construction in early 2025, it was something I had to consider.

Option 3 would have been the most likely to have led to an IA claim.

Question 6

Does the site with development potential have a planning application submitted?

Answer 6

No - But masterplan is being developed in conjunction with the council and will be submitted when finalised, earlier phases of the development are already being compelted to the north and west of the site.

Question 7

Was planning required for the headwall and scour protection?

Answer 7

Yes - this was handled by the planning department within the principle contractor as this is outside my area of competence.

Question 8

What is your client’s reporting process for fees?

Answer 8

As framework agreement in place, have to submit formal document in template provided by client, detailing the expected number of hours, level of staff, and services offered.

Question 9

What was the fee forecast?

Answer 9

Rates were £80, 125, 140, 160

Hours I anticipated based on previously similar schemes.

20 hrs GIS
200 hrs Graduate
50 hrs surveyor
25 hrs partner

Question 10

How was land referencing carried out?

Answer 10

• Instructed GIS team to gather HMLR data within (and in some instances) adjacent to the project’s boundaries
• Reviewed title information, checked for restrictions and existing land rights
• Wrote to each landowner under s6 of the NWWA 1977

Question 11

Why did you sort non-intrusive surveys by agreement but intrusive surveys by notice?

Answer 11

• NI surveys in this case were not anticipated to have any loss incurred to the football club’s business and football club were agreeable
• Intrusive surveys were done under s168 of WIA to allow client to enter if refused and also to protect the landowner and allow them to submit claim with formal evidence of the works.

Question 12

How did you inspect and measure the land?

Answer 12

• I carried out a photographic schedule of condition with defined coordinates, prior to surveys and post surveys.
• I assessed the topography and site visually when considering routing options and land rights. I was greater informed by the ecologist and topo survey.
• Measured the site (basic legnth x width) and easement area using a measuring wheel, google earth drawing tools.

Question 13

What is CAPEX and OPEX?

Answer 13

CAPEX = Capital Expenditure = cost to construct
OPEX = Operational Expenditure = cost to operate

Question 14

How would CAPEX and OPEX be assessed from an accounting perspective?

Answer 14

CapEx provides value for over a year and is capitalized on the balance sheet, whereas OpEx provides immediate benefits within a year and is expensed immediately on the income statement, often leading to quicker tax deductions

Question 15

What were the invasive species and how did they affect your advice on the route?

Answer 15

Himalayan Balsam - It is now listed under Schedule 9 of the Wildlife and Countryside Act 1981, meaning it is illegal to cause it to grow in the wild.

The plant must be cut below its lowest node to prevent regrowth later in the season, but as it tends to grow amongst brambles or on damp, inaccessible waterway banks, it can be challenging to reach.

Therefore, whilst it was easy to remove, de-veg costs were required. Overall it did not affect the routing.

Question 16

Why did you advise securing the easement through negotiation solely, and not present the CPO as an option?

Answer 16

At the time, the timescales did not work for the deadlines my client had been working to.

As routing had been agreed, it was highly unlikely that a CPO would be required, and in any case of financial disagreement, the cost of the easement/purchase would be still cheaper than going to CPO.

CPO is a last resort.

Question 17

If you purchased the CSO chamber area, how would you have obtained the rights to access across the private land?

Answer 17

Any land purchase would contain rights within the agreement for an easement of access with defined routes

Question 18

Was injurious affection/severance considered for the CSO chamber?

Answer 18

• No based on the location of the chamber as this was away from any proposed development buildings and the intended use was still for car parking
• Only permanent loss would therefore be the inability to park there under the easement/purchase. This would be covered in the cost of the easement/purchase.

Question 19

What was in the heads of terms for the easement?

Answer 19

1. Details of the parties
2. Property Information
3. Consideration
4. Rights Granted (free flow of xyz)
5. Other provisions + protections (not to build etc.,)
6. Apparatus
7. Services
8. Reference to fees

Question 20

How is the easement being negotiated?

Answer 20

• Initially got land valued to understand the value of the easement area = £4k
• Accepted that in reality, the strip and rights we are asking for cause more disturbance than that amount, reassessed offer to £40k. Based on value, permanent losses, special buyer, not wanting to go too low, considering the income of the car park, etc.,
• Currently negotiating

Question 21

How was compensation estimated for the car park?

Answer 21

Based on accounts supplied to me from the football club

Avg income was c £500 per day x 365 = £182,500
Plus need to hire new car parking attendant c £25k
Plus swell on match days = additional £500 x 40 (including rugby) = £20k

Total estimate therefore c £250,000

Question 22

Why did you advise pay some of the compensation proactively?

Answer 22

To ensure that the landowner was not out of pocket given the time on site would be 12 months.

New parking attendant was required from day 1 so this was a cost incurred straight away.

Better to pay first 6 months of the parking (£90k) straight away and then reassess after another 6 months.

Proactive payments will be taken off the final amount.

Question 23

How was the easement calculated?

Answer 23

I gathered comparable evidence for land of a similar use in the area, assumed that there was no hope value attributed to the specific strip and calculated it based on the area (0.2 acres). Therefore, valuing the land at approximately £20,000 per acre meant a reasonable offer of £4000.