This document summarizes a presentation for the Edinburgh Residents for Statutory Notice Reform Facebook group. The presentation discusses issues with cost overruns on property management projects in Edinburgh, management failures by the City of Edinburgh Council (CEC), and options for disputing excessive costs, including: 1. Getting an independent audit from an experienced quantity surveyor to identify unnecessary work, work that was not done properly, or work that was overbilled. 2. If audits do not resolve issues, pursuing legal action. 3. The presenter, an expert quantity surveyor who worked on a BBC investigation of property scandals, offers preliminary audits for the group.

1. A short presentation at The Minto Hotel, Edinburgh Thursday 29th September 2011 An open evening for the Edinburgh Residents for Statutory Notice Reform Facebook group

2. Gordon Murdie MD, Quantus QS BBC Scotland Investigates “Scotland’s Property Scandal” Expert QS 1. Introduction 2. Management of projects 3. Where did it go wrong? 4. We can work it out 5. Question Time

3. The highest of standards are clearly set down – this is what you are entitled to for 15%of the project cost --------- 1. Foreword

4. The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost “MANAGEMENT AND PROCEDURES”

5. The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost “MANAGEMENT AND PROCEDURES”

6. The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost “MANAGEMENT AND PROCEDURES” Fundamental services include

7. The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost “MANAGEMENT AND PROCEDURES” Also The initial site survey should therefore define the extent of the work Of course undermeasurement of required works is “problematic” – it is also wrong Another spelling error apart, of course this is a requirement

8. The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost “MANAGEMENT AND PROCEDURES” And there’s more ..... “The only works legally allowed to be carried out are those noted on the statutory notice” If more work is “necessary” then it is to be included in the TENDER – not months or years later

9. The highest of standards are clearly set down – this is what you are entitled to for 15% of the project cost “MANAGEMENT AND PROCEDURES” And then there is the all important issue of costs. Is it that owners are to be NOTIFIED AND INFORMED ABOUT COST INCREASES? Or kept in the dark until it is too late? What happened to proper professional cost control and cost reporting – homeowners are paying a 15% fee for this service.

10. 3. Where did it go wrong?

11. 3. Where did it go wrong?

12. 3. Where did it go wrong?

13. 4. We can work it out The involvement in BBC’s “Scotland’s Property Scandal” and other pre-existing cases has been, at the risk of understatement, interesting. This very group’s posts and comments on personal projects seems to indicate innumerable cost over-runs of an astonishing magnitude. Could it be the case that There have been serious failings in CEC’s management of many projects? And, consequently huge numbers of Edinburgh citizens are being asked to pay for (or have already paid for) Work that was not necessary? Work that was not done properly? Work that was not done at all? Work that was not instructed? Work that was not reported to them? If you are facing a final Bill that is causing concern and vastly in excess of the tender sum quoted then here’s a few suggestions Get your project audited by a suitably skilled and experienced Quantity Surveyor who knows his way around the process – there’s an expert one near here who has been commissioned by the BBC and is offering audit services! Try not to worry! Honesty is the rarest wealth anyone can possess, and yet all the honesty in the world ain't lawful tender for a loaf of bread. ~Josh Billings

14. If you dispute monies already paid to CEC or are being demanded to pay money to them – how can this be resolved? Just an idle thought..... Perhaps CEC are already scrutinising your project bill with a new calculator and carefully deleting work that was unnecessary, work that was not done, work that is wrongly rated, work that was not instructed, work that they had no powers to instruct, scaffolding that was miscalculated etc (not that I am suggesting such errors could possibly have been made in the first place). If that has happened, then there may already be an Edinburgh Council refund cheque with interest, an apology and some compensation on its way as we sit here? If you are facing a final Bill that is causing concern and vastly in excess of the tender sum quoted then here’s a few suggestions Get your project audited by a suitably skilled and experienced Quantity Surveyor who knows his way around the process – there’s an expert one near here who has been commissioned by the BBC and is offering audit services! Try not to worry! Honesty is the rarest wealth anyone can possess, and yet all the honesty in the world ain't lawful tender for a loaf of bread. ~Josh Billings

15. If you dispute monies already paid to CEC or are being demanded to pay money to them – how can this be resolved? Appoint a suitably skilled and experienced Quantity Surveyor to forensically audit your project. The outcome of the audit will arrive at a CORRECT amount for the works properly carried out. The audited account, in the form of a Scott Schedule, may well be all it takes for CEC to change their position. Quantus QS has a track record on forensic audits and IT systems already in place for CEC audits. You wouldn’t want anyone to misunderstand A38 or overlook duplication on the H59, F22 & F23 items or not be aware of where there are alleged to be no less than 50 substandard new flat roofs across the city!

16. Before we move on to open questions, my legal colleagues from McKay & Norwell have kindly come along to shed some light on the legal issues in what may well be a combined multi million pound morass. For this facebook group, I can offer a preliminary audit with the added value benefit of the intensive background work already carried out for the BBC documentary. A select team of hand picked, briefed and highly skilled QSs is ready to get to work for you.

17. In cases where a forensic audit by an appropriately experienced QS doesn’t lead to a fair, reasonable, satisfactory and economic resolution (and, it should) then there is the more expensive legal route. Before we conclude this brief presentation, John Mitchell and Richard Godden may wish to offer a legal perspective . Next Any Questions Richard Godden John Mitchell