How PCC compares with a structural warranty

Structural warranties and Professional Consultants Certificates (previously and often still know as Architect's Certificates) are important for UK property developers for several reasons including:

1. Compliance with lending requirements: Many property developers require financing from banks or other financial institutions to fund their projects. Lenders often require a Professional Consultant's Certificate (PCC) as part of the loan application process. The Certificate provides assurance to the lender that the project has been thoroughly assessed by an independent professional, reducing the risk associated with the investment. The PCC is also needed should the property be sold on to a third party within 10 year timeframe of the development being completed.

   
   

2. Building regulations and planning permissions: Property development in the UK is subject to various building regulations and planning permissions. A Professional Consultant's Certificate verifies that the project has been designed and constructed in compliance with these regulations. It ensures that the developer has obtained the necessary approvals and that the project meets the required standards of safety, accessibility, and environmental sustainability.

3. Risk mitigation: Property development involves various risks, including design flaws, construction defects, and inadequate project management. A Professional Consultant's Certificate helps mitigate these risks by providing an independent assessment of the project at different stages, such as design, construction, and completion. It helps identify and address potential issues early on, reducing the likelihood of costly mistakes and disputes.

4. Marketing and sales: When marketing and selling properties, a PCC adds credibility and trustworthiness to the developer's brand. It assures potential buyers that the development has undergone professional scrutiny and meets the necessary standards. This can enhance the marketability of the properties and attract more buyers, leading to increased sales and profitability.

5. Insurance and warranty requirements: Property developers typically obtain insurance coverage for their projects, including structural warranties. Insurance providers may require a professional consultant's certificate as a condition for issuing coverage. The certificate verifies that the project has been assessed by an independent professional, reducing the insurer's risk exposure.

6. And, of course, a PCC is around 40% lower cost than a structural warranty, providing appropriate assurances at a reduce price!

In summary, a professional consultant's certificate plays a crucial role in ensuring compliance, reducing risks, enhancing credibility, and meeting the requirements of lenders, regulatory authorities, and insurance providers. It is an important document that demonstrates the professionalism and quality of a property development project in the UK.