A property redevelopment for residential purposes was halted when a main contractor went into liquidation. To resurrect the project, additional monies for the costs to complete were provided by a gap funder. If the development turned out to be more profitable than projected, clawback of 50% of the excess funding would be repayable to the gap funder. On completion, a dispute arose over the amount of clawback – the gap funder claimed over £1million, the developer contended for £Nil.
As independent expert, our work involved collating, analysing and questioning the parties’ representations on the issues between them, to reach a determination.
We identified errors on both sides, including undervaluation of a property transfer and omission of income by the developer, and extra development costs not accounted for by the gap funder. We reported our findings in detail, reaching a sum of £0.5million clawback owed to the gap funder – an expert determination that was binding on both parties.