Issue - meetings

Option1: Partnership

Option 2: Works contract

Option 3: Blended partnership/ contract options/ multiple partners

Option 4: Do nothing

Advantages

- PME to explore market interest and models for a viable route to delivery within a partnership model.

- Test market interest in models compatible with project outcomes.

- Transfer of major risks (funding, sales, development).

 - Injection of development expertise and capacity.

- Reduced control over design detail and lettings policy.

- Greater cost certainty for the Council within delivery model

- Compliant process via procurement frameworks

- Mitigates volatility of construction costs

- Strong Council control over design, sustainability standards, and tenure

- Potentially lower construction costs

- Partial

transfer of construction risk to contractor.

- Flexibility to combine different partnership and or contract models that are deemed best suited

- Potential to attract a consortium of partners bringing complementary skills (funding, development, construction, management).

 - Spreads risk by not relying on a single delivery partner.

None

Disadvantages

- Potentially higher long-term costs

- Reduced control over design and delivery

- Potentially reduced control as a council owed asset

- Portability of grant provision into Partnership model.

- Increased pre-development cost and management costs

- Significant management resource

- Current unavailability of funding prior to CHSR

- High financial burden on HRA

- Affordability risk

– mitigation via Homes England grant and potential new Government borrowing programmes.

- Risk of misaligned objectives between partners.

- Longer negotiation period may slow mobilisation.

- Added complexity in procurement, legal structures and governance.

- Higher resource needed to manage multiple relationships.

- Risk of misaligned objectives between partners.

- Longer negotiation period may slow mobilisation.

- Added complexity in procurement, legal structures and governance.

- Higher resource needed to manage multiple relationships.

- Failure to progress key procurement strategy

Risks and mitigation

- No appetite for engagement

- Proposals not compatible viability/tenure/control

- Exploration of suitable frameworks to increase cost certainty may reduce management burden. However, a tender at this stage may risk predetermination challenge.

- Risk of fragmented delivery

– mitigated through clear governance and robust partnership agreement.

- Could confuse the market – PME will test interest.

- Potential overlap or conflict between models, winning both sites may be vital to Partners business model

- Stagnation of the project objectives.

- Pursue twin track approach.