To approve the final contractual arrangements for implementing the development and regeneration programme (DRP). While the finally agreed arrangements have been tailored to reflect organisational changes made by the preferred bidder, they are not materially different from those discussed during the procurement.

That:

(a)            the council enters into overarching agreements (2) with Keepmoat Homes Ltd and Engie Regeneration Ltd as part of the council’s development and regeneration programme.

(b)            that the council enters into parent company guarantees with Keepmoat Ltd and Engie Services Holding UK Ltd are in place to underpin these overarching agreements.

1               The council could choose not to enter into an overarching agreement through the arrangements outlined in this report, however, that would prevent the establishment of the Development and Regeneration Partnership and associated benefits to the council in supporting economic and housing growth and contributing to the council’s longer term financial sustainability.

2               Alternative commissioning options exist for some, but not all, of the projects that are likely to be brought forward as part of the programme. The proposed approach was recommended as the partnership approach will allow the council to take advantage of its partners’ expertise to ensure the success of the programme. 

3               The overarching agreements could be entered into without putting in place parent company guarantees. This would provide less protection to the council in the event that its directly contracting partners get into financial difficulties.