Economic, Legal, and Geotechnical Analysis: Millennium Mills Project

This report analyzes the redevelopment of the Millennium Mills in London, focusing on the economic, legal, and geotechnical aspects of the construction project. It begins with an economic evaluation of infrastructure financing, detailing cost estimates for various sectors like construction and services, as well as sources of finance including private investment and government funding. The report then addresses geotechnical issues encountered on the construction site, emphasizing the importance of ground and surface evaluations for foundation stability. Furthermore, it explores different methods of resolving disputes and the roles of professionals such as engineers and architects in the building environment. The Millennium Mills project involves significant investment and aims to transform the area into a mixed-use development with residential, commercial, and leisure facilities. The report highlights the challenges and considerations necessary for the successful execution of the project, including social, physical, and economic influences, along with the importance of considering the geological characteristics of the construction site. The report concludes with a comprehensive overview of the financial planning, site assessment, and professional responsibilities involved in the construction process.

Section IV ( Economic & Legal Issues)

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Presenting an economic evaluation of financing of Infrastructure and like costs. .................1
2. Geotechnical Issues of Building Construction Site.................................................................4
3. (i)Different method of resolving dispute in the project.........................................................10
3.(ii) Role of professionals in the building environment...........................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Millennium Mills is a old 20th century building which was used as flour mills. As per the
new construction on plot 4 process process these building is proposed to redevelop in order to
make proper utilisation of unused land or building for future perspective. Millennium Mills is
located in the West Silver town at south side of the Victoria Dock. This building is situated
between the Thames barrier and Excel London Exhibition. Building new construction on plot 4
process is known as process which is used by the construction company to develop mixed use
building that includes demolition of old building and open land of no use. There are different
processes are required in the new construction on plot 4 of a building. These processes are
important to redevelop a building as multi purpose with cost, time and design efficient (Li,
Zhang, Ding and Feng, 2016). This report will be explaining the relevant data and information
that is required for the new construction on plot 4 of Millennium Mills in London, United
Kingdom. In this study present economic evaluation of financing infrastructure and related cost
will be analysed in the report. There are different issues are faced by construction company
related to the geographic location of construction site in development of building. Legal advice
also will be provided to the client in order to solve the disputed with in the process of
redeveloping building. Role of engineer, architect, project manager also will be explained in
order to build efficient environment on the construction site.
1. Presenting an economic evaluation of financing of Infrastructure and like costs.
Economic evaluation of the financing costs is concerned with valuing the expenditures
involved and economic value concerned with the reconstruction of the establishment. It is an
industrial building established in Silver town of London. It is an 3.5 billion of new construction
on plot 4 project that is concerned with the development of the industrial place. The industrial
property will be concerted in new homes, commercial hubs culture and leisure facilities, green
spaces and parks with 1 kilometre of water front.
The proposal has been taken by company after the failure of proposal made in 2000.
Refurbishment of the place of the Mills will have significant impact over area to transform
present landscape. The project will involve technical and logistic challenges with number of
hurdles that are required to be addressed positively by the engineers and new construction on
plot 4 authorities (Yakimchuk and et.al., 2017). Before starting with the projects there is great
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requirement of understanding the social, physical, social and economic influences to ensure safer
and environment to everyone that is involved in the project.
The economic values are to be judged by the company considering upturn of local
economy that will be boosting district needs. Proposed residual and commercial development
will be altering the landscape of the Silverton. This will also involve considering the
improvements of transport connections between the A13 & A406 for supporting the project. The
development of the transport connection will also be borne by the developing authorities. This
will be done before the area gets overdeveloped by the people. Engineering department is
required to incur cost for inspecting the geographical effects on the development of the site.
Social impact is required to be considered as this will be deciding the prices at which the
commercial and residential developments will be made available to the society (Chang and et.al.,
2018). Also the estimates for the other facilities that will be provided in new construction on plot
4 are like schools, hospitals, transportation and public services. Deeper analysis of the project on
the economic scale are required to be analysed by the business.
Construction sector of UK is one of key sector in UK's economy that comprises of big range of
technologies, products and services. The factors change in terms of values that they will be
generating in terms of reflecting the differences in specific factors related to the construction.
Scheme of the new construction on plot 4 plan
Scheme Investment
Ground Floor Shops ect. Commercial place £200.00
First Floor Gymnasium and club houses £300.00
Remaining 8 Floors Residential flats £2,000.00
£2,500.00
Estimates of the costs in the new construction on plot 4 plan
£ in million
Construction Sector £2,500
Construction of Buildings £1,500
Civil Engineering £600
Special construction activities £400
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Service Sector £500
Architectural & quantity survey activities £100
Wholesale of wood, construction & materials £130
Wholesale of hardware, plumbing and
heating equipments £70
Renting & Leasing of the construction
equipments etc. £200
Total Estimated Cost £3,000
The New construction on plot 4 plan for cost estimated will consists of following sectors.
Construction Sector
The project is divided into three contracting activities
Construction of Buildings – This will involve costs and estimates related to the construction of
commercial places and the residential premises in the mills.
Civil Engineering – This sector will focus its attention over the construction of the bridges on
water frontage , construction of roads in the township connecting with the main roads of city and
other utilities that will be involved in the township development programmes.
Special construction activities – It will include the small but important activities in the
construction of the places. It will include electrical connections in the commercial and residential
buildings and other areas, demolition of the existing place that cannot be used in the construction
activities by the business enterprise. Other activities like roofing, plastering, paintings and other
miscellaneous activities.
Service Sector
Construction of establishments cannot be finished accurately without incurring the
service costs. Service costs in the given plan are divided into four major activities that are as
follows.
Architectural & quantity survey activities
It refers to the activities that are required to be undertaken in the project for valuing the
site, commercial and residential buildings. They are required to analyse the insurance cover
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required to be taken on the development sites and buildings separately (Liang and et.al., 2017).
This will require actuarial services for valuations. Architectural services are required to be
undertaken for identifying the estimates of the materials that will be required in construction of
various buildings and residential houses. The services are most important and involves high
professional costs.
Wholesale of wood, construction & materials
This activity is focused over arranging for materials for constructions at wholesale prices.
Company appoints managers that have the role of arranging the above materials at lowest
possible prices available by negotiations with wholesale suppliers. Also they will ensure sale
from existing mills of materials that are of no use at wholesale prices.
Wholesale of hardware, plumbing and heating equipments
This involves services provided by plumbers for plumbing in the entire township, heating
equipments that will be required in the construction activities and other commercial uses.
Hardware are required to be arranged at wholesale prices in the market for major contracts. This
will be done after overall analysis involved in the sector (Huang, 2019). Also the existing mills
materials will be sold at whole sales prices in the market. This could be utilised against the raw
materials purchased.
Renting & Leasing of the construction equipments etc.
The service sectors is concerned with procuring the equipments that will be used in the
project for construction of buildings and other infrastructural projects. It will ensuring the
equipments could be made available on rent or those could be leased. This will reduce the
construction costs in the new construction on plot 4 plan which could be utilised elsewhere in
providing more facilities.
Sources of Finance
Private Investment – Private investments means the funds that are invested by the private
investors. These investors are the people who invest in projects that seems to be profitable to
them after analysing the pros and expected market risks associated with the project. It has gained
considerable amount of investment in the construction of the building.
Government Funding – This is also referred as the grant given by government where it appears
to it that the project is for the welfare of the society. Government grants aids for the construction
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of the building. Project has gained government grants of huge amount for the development of the
building and up gradation of the area.
Building Layout
Ground floor – It will consists of the retail shops and business offices. These shops and
premises will be given on rent and leases. This will generate revenues that may help inn
financing the operations for construction.
1st Floor – This floor will consists of the leisure areas like gyms spa. Places may be sold to the
residents or the unsold places will be developed by the building itself and the revenues generate
on these will be used for its own purpose.
Remaining Floors – These remaining floors will be residential that will be sold to people.
However selling them at once is not possible. Unsold houses will be given on rent by the
company that will generate nice revenues . These revenues may be used by the company for
maintenance of the building.
Evaluation
The cost involved in the constructions are divided between the contracting activities and
service sector. This will give more clear and accurate image of the financial estimates and
evaluation of the new construction on plot 4 plans. The whole project is to be completed within
3.6 billions. The development plan will take three years in completion. After this it will be made
available for sales to society for establishing the civil developments. The project is estimated to
be completed within 3 billion by the project management.
2. Geotechnical Issues of Building Construction Site
There are different challenges are faced by engineers and labours related to the location
and specific geographic condition of the construction site. Challenges that are related to
geographical qualities and limitation of the particular location or land. These issues are directly
connected to the planning, development and execution stage. Geotechnical construction is
consists of various establishments like foundations, slopes, embankment, retaining structure,
tunnels, wharves, levees, landfills and roadways which are supported by soil or rock formation
beneath the primary layer of surface. This is important for the construction company to evaluate
the ground and surface evaluation to find various challenges that are related to soil and rock
formation to provide strong and long lasting stable platform for building. Foundation of the
building is main part of the a building which is most important for the stability of the building on
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the ground. There are various actions are need to be performed that can help the construction
engineers to design the processes and structure of building to keep is safe and free from natural
and men made challenges that can affect the stability of building. There are various aspects of
construction site are evaluated by the geologist to improve the strength, stability, durability of
construction process. In this evaluation process rock formation and quality, ground water, soil
quality, water content in soil and soil density is used to evaluate in order to make effective plan
to make structural design of building. This designing process is consists of various parts of
building which are sub divided in two categories which are- Sub Structures and superstructures.
Superstructures are known as the part of building that are present above the ground level and the
sub structures are known as building parts that are exists below the ground (Korol and
Pleshivcev, 2018). Main building can be consider as the superstructure of a building and
foundation and basement can be considered in the substructure. Substructure are most important
for the stability of the building. To design the foundation of building this is important for
engineers and architects to study ll the geological factors of construction site.
The geotechnical analysis is known as process where engineers and geologists collect the
information related to the physical conditions and properties soil condition and rocks beneath the
surface to design foundation and sub structure for a building that is proposed to be developed in
the future. In the process of geological analysis various aspects of soil and rocks are tested by the
geologists and engineers by taking various samples of soil and rocks from different location with
in the construction site. The factors that can affect the cost and time of construction company are
related to the type of soil, type of rock formation in ground and water content in the soil. This
factors can affect the new construction on plot 4 process of Millennium Mills. As per the
proposed building there are different factors that can affect the construction process of building
and increase the time consumer and capital consumed in the construction process. Some of the
main factors and issues are-
Stand Up Time
Stand up time is known as the time required in the process of building foundation for the
superstructure of a under construction building. These are different operations are required in this
task where operations like digging, steel reinforcing and land filling operations performed to
provide a stable base to the superstructure of building. This is one of the most important phase of
construction process where the time which is consumed in providing support to building to stand
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still the construction project. There are some considerations are need to be made which are
important to make scheme of construction (Korol and Pleshivcev, 2018). The main thing that is
need to be considered in construction process is strength of foundation base. The main thing that
is important for the strong and stable building is the base of foundation. This is important to find
strong base for building foundation to keep it secure from unexpected collapse. The location of
the Millennium Mills is near to the water body which is main problem of new construction on
plot 4 process. Due to this close water body soil and rock formation could be soft and not enough
to hold heavy construction for longer time. Soft foundation base can affect the stability of the
building. To reduce this issue this is important for the engineers to select right processes to build
foundation building and effective processes to reduce the softness of soil to provide robust base
to proposed building. To solve this issue construction company have to implement some
processes to develop strong base for building. This soil treatment process can cause extra cost in
the construction process. This is how softness of soil can increase the cost of construction
process. The implement of soil treatment process can take time to reduce the softness of the soil.
This softness of ground can increase stand up time for building which is not effective and cost
efficient for construction process.
Existing structure
Most of the building new construction on plot 4 process starts with the demolition of pre
existing building and then start the construction of building. The main issue with this factor is
related to the remaining of previous building in the ground. In the process of new construction on
plot 4 of new building this is important to remove the remaining of old building to provide better,
still and robust foundation to the building. These remaining parts of previous foundation can
affect the development of new foundation on the same place. Old construction remaining can
affect the designing, implementation and execution of the construction process. It can increase
the cosy of construction process in different ways. Most of cost is required in the removal of
foundation of the previous building.
As the Millennium Mill are constructed nearby the water body so the softness of the soil
must be high. To make stable building on site like this it is important to make diverse and
equally spread foundation. This will be really difficult for company to remove this foundation
old building for construction company (Zhang and Wang, 2016). This can increase the cost of
building new construction on plot 4 process in various ways. There will be more construction
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equipments are required in order to remove the foundation of old building. The labour cost of
this process also will be high. This removal process also can take large time to which is very
costly for company. These also can cause different issues in the construction process. Mainly the
designing process of building foundation will be affected by this. The engineers and architects
have to consider different aspect in the designing process. Building designing and foundation
process are most important for the building designing process. Due to soft soil this is difficult
process to develop design for foundation of a building with remaining structure of previous
foundation. This will force the designer to make designs with remaining of the previous building.
It can cause extra material to build foundation of building. The trench that is developed due to
removal of previous foundation also need to be full fill effectively to avoid accidental collapse of
structure. This land filling process also can increase the cost of building development process.
There are also some superstructure are presents on the construction site which are related to the
existing building that is about to demolished in the new construction on plot 4 process. This is
important to remove these existing obstacle in order to obtain open place to start new
construction. This how the existing structures also can increase the cost of building construction
process.
In-Situ Stress
The ground of construction site is evaluated on different perspectives. There are various
tests are performed by the construction engineers, civil engineers and geologists in order to
evaluate the selected land for new construction on plot 4 process. In this process In-Situ Stress
test is performed by engineers in order to check the response of the ground when pressure or
force is applied to the ground. This is characteristics of soil or ground is important for the
construction process. This is can be used to evaluate the effectiveness and stability of building
after construction of building. By analysing the reaction of the soil and rock formation with
applied pressure is analysed in order to test the stability of soil for construction process. It the
movement and vibration in the soil is too high or medium then the construction site needs
treatment of to avoid major vibration due to weight of building (Allen and Iano, 2019). By
effectively treating the soil construction company can make ground of construction site more
stable for heavy and complex building structure. This is how these characteristics of soil can
increase the cost of construction process on the site of Millennium Mills. This is process of soil
testing and In-Situ Stress testing also can help the construction company to use right process to
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develop foundation for proposed building (Song and Lee, 2017). This is how testing process of
soil and ground, treatment process and foundation development process of sub structure can be
so costly for construction company.
Ground Water
In the process of the construction site evaluation this is important for the construction
engineers and civil engineers to evaluate the location of ground water reservoir to design the
structure of the foundation and superstructure of building. There are different dangers are
associated with construction of foundation for building. The location of ground water can affect
the foundation base of the building. It can reduce the robustness of soil and rocks which are
providing strong base to foundation. In this case this is very dangerous for company to construct
heavy structure. Due to the closeness of water body can increase the moisture in the soil that can
cause more movement in the ground. This movement is dangerous for safety of foundation. To
reduce the impact of these movements construction company have to use more beams in
foundation with strip footing to make foundation more stable along with less movement in
substructure of building. To avoid this condition construction company have to use the
foundations like Mat foundation that requires more steel rods and concrete. This is how
engineers uses the mat foundation to avoid the soil movement due to ground water. Due to large
metal and concrete is used in construction process can increase the cost of building development
process. In this type of foundation a base is prepared which is made of reinforced steel and
concrete to make base more stable and capable of bearing the weight of whole building. It also
helps to prevent shifting of soil and rocks (Sandanayake, Zhang and Setunge, 2016). This also
will require more transportation cost of raw material. That is how ground water factor can cause
more cost to the construction project.
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Rock Hardness and Strength
There are considerations are made by the construction engineers and architectures to
design in the foundation and superstructure of building. The stability of the superstructure is
highly depended on the effectiveness of foundation and stability of foundation base. Usually
construction engineers uses digging in ground to found strong base for the foundation of
building. This strong base of the building are usually known as robust soil formation of large size
rocks beneath the soil. The stability of building is highly depended on the strength of these rocks
and soil formation (Luo, Sandanayake and Zhang, 2019). If the base of these soil and these rock
is not stable. It can cause instability of the building structure. Any movement or crack in the rock
beneath the building can risk whole constructed structure. To avoid this risk engineers have to
make shock proof design of foundation that can help to avoid distortion in foundation and keep
building stable. To make this king of foundation it requires more construction material that is
consists of steel rods and heavy amount of concrete. This high amount of construction in
foundation building can increase cost of construction. In some cases organization also uses the
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Illustration 1: Mat Foundation
(Source: Types of Foundation for Buildings and their Uses, 2020)