On Wednesday morning, coffee, croissants and good company set the scene for an interesting morning meeting at KHR Architecture. The focal point of the meeting was the delegated developer model, which was first dissected legally and then followed up by an architectural look at a concrete general-private housing project.
Expert presentations sparked knowledge sharing
After a welcome by KHR's director Lars Kragh, the Veronica Petersen from the NT Lawyers floor. Through more than 20 years in the industry, Veronica has gained extensive experience in legally organising construction projects in a delegated developer model. Veronica's solid insights were in no doubt as she presented and communicated the legal basis, as well as the possibilities and limitations of the delegated model.
Veronica's presentation was based on typical misunderstandings she encounters in her work with projects solved in a delegated contractor model, and it prompted good questions and wondering, which were picked up in professional and relevant discussions.
Design Director Torben Juul from KHR concluded the meeting by presenting a current KHR project from Kregme, where the model is used in practice.
Where does the delegated developer model come from?
The delegated developer model emerged as a solution to previous challenges of urban sprawl and ghettoisation. Despite a growing desire for more mixed-use construction, developers often encountered challenges such as earn-out clauses for resale in an undeveloped state, prohibitions on the purchase of turnkey construction, and rules on competitive bidding.
The solution to these challenges was therefore the delegated developer model, which initially had no legal basis. In this way, a (general) contractor undertook to build both his own and the housing association's building as a 'delegated builder'. In 2014, the model was accepted in practice and in 2020 it was codified by the introduction of Section 116 of the General Housing Act, where it was referred to as 'cooperation between the general and private parties'.
When is the delegated contractor model used?
The delegated developer model traditionally used in the construction of integrated buildings - typically condominiums. However, it can also be used if there are other reasons for the construction to be built in cooperation with a private party. This could be for small sites, a special building concept or if it is a requirement of the land seller.
Are you interested in advice on the delegated developer model?
At KHR we have good experience of applying the delegated contractor model in practice. The model has been used, among other things, in the preparation of Kregmehusene, a project that combines public and private housing around green courtyards to create community and ensure diversity.
If you need to discuss a housing project and are perhaps considering a delegated developer model, you are welcome to contact Torben Juul via mail or phone for opportunities and further information.
