Questions + Answers
Q: What would happen if planning permission is not granted by East Lothian Council?
A: The Club have consulted with ELC by way of a pre-planning application which meant sharing with them the proposals alongside some detailed designs. This is a private process aimed at finding out if there are any particularly contentious issues that might cause ELC to refuse a future planning application. It is a useful exercise to reduce the risk of a planning permission refusal. An on-site meeting with ELC took place recently and no red flags were raised. The process is, however, not formally part of getting planning permission and until that is achieved, the Club cannot be certain of obtaining it.
If planning permission was refused, the Club would work closely with ELC to understand their concerns and as far as possible amend the plans to satisfy their concerns. Ultimately, in the very unlikely event that no mutually agreeable position can be found, the Club would consider how the property could best be used for Club purposes or redesign it and put it back on the market to maximise value.
Q: What can be done to reduce the risk of significant cost escalation?
A: As with all construction projects, cost escalation is always a risk. To mitigate this risk the Club have implemented the following process
a) an extensive survey was carried out to determine, as far as possible, if any foreseeable problems could be uncovered.
b) a full elemental cost plan has been prepared by a quantity surveyor
c) as the final design is developed, at each RIBA design stage, the cost plan will be updated and checked against the budget cost plan. Should costs rise, value engineering may be carried out to bring the budget back into line if that is thought the best course of action at the time.
d) the building contractor will be engaged by way of a negotiated contract and will be taken on at an early stage to price the works as the final detailed designs are concluded.
e) during construction a “change control process” will be implemented to ensure any proposed changes are fully costed before approval to proceed is authorised.
Q: Will there be additional staff requirements because of the Dormy?
A: The cleaning and laundry aspects of the Dormy operation will be outsourced, along with maintenance and the garden. There is likely to be a couple of hours of additional chef time per day for the preparation of breakfast.
Q: What will happen to the paddock and Duncur Road sites that were previously considered suitable locations for the Dormy House?
A: The HCEG Property Group plan to produce a property masterplan which will look at the Club’s property assets, and in particular, what could be done with the assets in and around Duncur Road.
Q: What would be done with the Dormy House if it wasn’t supported by Members and costs significantly exceeded revenues?
A: Initially the Club would wish to understand why demand was not as great as forecast and seek to address the issues. If operations did not improve then consideration would be given to letting it out to visitors. From an early survey of tour operators, they indicated there would be strong demand for accommodation close to Muirfield, and that room rates would be at a significant premium to the anticipated Member rates.
The design of the Dormy has been aimed at the provision of a comfortable place for Members and their guests to stay, built within a reasonable budget. There has, however, been an element of future proofing included in the design so that if the worst came to the worst the property could be sold and turned back into a house or split into two houses.
Q: Is there a minimum or maximum period of stay permitted?
A: No, no limits planned presently
Q: How will room bookings work? How far in advance?
A: The finer details of this are still to be worked out, but once the Club’s annual cycle of fixtures and events has been established, with the required Dormy reservations, made then booking will be taken on a ‘first come, first served’ basis. Unlike the old rooms in the Clubhouse, guests will not have their booking ‘bumped’ in favour of members who book after them.
There is likely to be an on-line booking system supported by staff in golf services.
Q: Will breakfasts have more variety than is provided presently?
A: Yes, it is likely the breakfast offering will be expanded
Q: Will alcohol be served in The Dormy House?
A: The DWG are presently exploring the licensing arrangements, but what is planned is an extension to the Clubs licence to include deliveries to the Dormy. Members will be asked to order from the Club before a certain time of day. A more comprehensive licence may be applied for at a later date.
Q: The proposed charge for members is very reasonable compared to other accommodation available near the Club. What assumptions have you used?
A: Several different scenarios have been tested by DWG and finance, but the base case model uses costs based on similar services received in the Clubhouse, and a reasonable estimate for insurance, maintenance and the internet. Costs include actual rates bills, and rates for outsourced laundry and cleaning and extra chef hours. It assumes 50% of those using the Dormy will be members and 50% will be guests, and that the occupancy rate will be 45%. It includes a margin on additional breakfasts and alcohol sold and delivered to the Dormy. The occupancy rate in particular will be an important determinant of whether the Dormy operates at break-even or not. The estimate is based on information obtained from the survey of other Dormies in the UK where each of them has an occupancy rate of over 50%.