# Spa Conversion — Project Brief

*Agreed scope and parameters for the croft outbuilding conversion*
*Last updated: April 2026*

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## What we're building

Convert the stone croft outbuilding into a small spa facility for hotel guests and local bookings.

**Scope:**
- Sauna (Finnish-style, 4-person, with kiuas unit)
- One multipurpose room (screed floor, underfloor heating — flexes for treatments when a therapist is confirmed)
- Changing area, WC, and shower
- Full electrical rewire and new plumbing
- No indoor hot tub (existing outdoor hot tub at the main building remains)
- Hot tub prep-run roughed in (pipe run and power circuit only — keeps phase two option open)

**Out of scope for phase one:** plunge pool, staffed treatment programme, additional hot tub.

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## Budget

| Item | Estimate |
|------|----------|
| Strathmore Build (contract) | £115,500 |
| Scottish Water connection | £7,200 |
| Architect and structural engineer | £4,500 |
| Planning and building warrant fees | £1,800 |
| Loose equipment and furnishings | £2,500 |
| Contingency (5%) | £6,600 |
| **Total (ex VAT)** | **£138,100** |

Planning figure: **£138,000 ex VAT**. VAT reclaimable as business expenditure.

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## Decision gates (all cleared before proceeding)

1. **Scottish Water connection below £12,000** — confirmed at £7,200. ✓
2. **Planning pre-app with no material obstacles** — pre-app meeting February 2026, no issues flagged. ✓
3. **Contractor quote at or below £110,000 all-in** — Strathmore came in at £115,500; marginally over, but competitive and no comparable alternative locally. Decision to proceed — see decisions log.

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## Timeline

| Milestone | Date | Status |
|-----------|------|--------|
| Pre-app meeting, Highland Council | Feb 2026 | Complete |
| Scottish Water site visit | Feb 2026 | Complete |
| Contractor quotes received | Apr 2026 | Complete |
| Decision to proceed | 14 Apr 2026 | Complete |
| Planning application submitted | 17 Apr 2026 | Complete |
| Building warrant application | In progress | — |
| Contract signed with Strathmore | Pending planning | — |
| Site start | Mid-May 2026 | — |
| Practical completion | ~Sep 2026 | — |

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## Key contacts

| Role | Person | Company |
|------|--------|---------|
| Main contractor | Duncan MacKenzie | Strathmore Build |
| Plumbing (services) | Stuart Connelly | Connelly Plumbing & Heating |
| Electrical (services) | Craig Paterson | Paterson Electrical |
| Accountant / finance | Janet Macpherson | Macpherson Accountants |
| Highland Council planning | — | Planning reference TBC |

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## Revenue model (summary)

Base case anchored on room rate uplift (£17,000–22,000/year) and guest sauna sessions (£4,000–7,000/year). Treatment income and local bookings treated as upside only — not in the base plan. Annual loan repayment at £138,000 over 10 years at ~7%: approximately £19,000/year. Running costs: £8,000–12,000/year. Tight but workable if room rate uplift performs.
