Approval to enter into a design and build contract with Equans Regeneration Limited for the delivery of this development project. The project budget has been allocated through the annual February Council budget-setting meetings.

This decision acknowledges and approves modifications to the proposed contract, including changes to the liability and hardship clauses from those originally advertised. Additionally, the associated risks of proceeding with this contract have been noted and considered.

Approval to enter into a design and build contract with Equans Regeneration Limited for the delivery of this development project. The project budget has been allocated through the annual February Council budget-setting meetings.

This decision acknowledges and approves modifications to the proposed contract, as contained within the attached confidential appendix. Additionally, the associated risks of proceeding with this contract have been noted and considered.

To enter into a build contract with Equans Regeneration Limited. OCHL will act as the development manager on behalf of the Council, and will undertake the direct development of Phase 1 of the Northfield development in the HRA.

To deliver 51 affordable new homes – which supports the Council's strategy and priority of providing more affordable housing. This initiative contributes to the City Council's affordable homes delivery programme. Alternative Options Considered.

Approving the additional associated risks are to avoid procurement, reputational damage with HE, loss of HE funding, affordable housing delivery setback.

If the Council does not proceed with a build contract with Equans Regeneration Ltd., a re-tendering process will be required. This would introduce additional time and costs to the programme, potentially risking viability. Should the development become unviable, the Council would be unable to deliver it directly as outlined in the Affordable Housing Supply Programme.

Contract award and Start on Site (SoS) must be completed by March 2025 to comply with Homes England (HE) funding requirements.

If an agreement is not reached imminently, the project would require a re-tender, which is will not result in a better price and will expose the project to greater cost inflation (estimated at c. £500k) plus an increase in consultancy costs.  There is also an additional cost associated with retendering of this work.

Homes England Funding Dependency. Failure to award the contract before March 2025 would require withdrawing the Homes England bid, with no new funding opportunities for at least 12 months due to shifts in Affordable Homes Programme (AHP) timelines. Any delay in Practical Completion (PC) beyond March 2027 could result in the loss of the final grant payment, as this coincides with the AHP21-26 programme deadline (including its one-year "run-off" period).

Reputational Risk with Homes England and the Supply Chain, failing to proceed with the contract could damage the Council’s reputation with Homes England and key contractors. 

Affordable Housing Delivery Setback, this project is part of the City Council’s strategy to deliver 51 affordable homes. Failing to proceed will delay or halt this goal, reducing the supply of much-needed affordable housing.