Transcript Document

Procurement law and development
agreements: case law update
Cyrus Mehta,
Partner
Nabarro LLP
Update
• OGC Procurement Policy Note (16 October 2009) – guidance on
development agreements
• AG’s opinion in Helmut Müller (case C-451/08)
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OGC guidance
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Definition of “works contracts”
Outline specifications
Specifications relating to land use planning policies
“Mixed” land/works contracts – e.g. covenants to refurbish
Need for legally binding contract
Building licences
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OGC guidance
Problem areas:
• Section 106 Agreements
• Developer-led projects:
– para 24 of Guidance
– development agreements “to safeguard Council’s interests
as freeholder”
– Müller provides some support
• Regulation 14(1)(a)(iii) exemption – “For technical or artistic
reasons, or for reasons connected with the protection of
exclusive rights, a public contract may be awarded only to a
particular economic operator”
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AG - Müller
• Limits to “functional” interpretation of procurement law in
defining works contracts
• Need for a “direct link” between the public authority and the
works:
– acquisition of ownership/use
– using public resources – e.g. cheap land
– initiative taken by public authority
• New use of planning powers does not suffice
• Need for contractual obligations to develop
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AG Müller
• Works concessions
– “ownership” test
– limited duration
– conflicts with City of York/Osbaldwick
– implications for PFI/PPP contracts
• Separate but related “land” and “development” transactions
must be aggregated
U0296.3/58829130
Procurement law and development
agreements case law update
Cyrus Mehta,
Partner
Nabarro LLP