Agenda item

The report sought Cabinet Member approval to appoint the preferred contractor for the delivery of a construction contract at undisclosed site – detailed in the exempt part of the report. The development was designed to provide safe and secure accommodation.

The Cabinet Member was asked to approve the appropriation of the land outlined in red on the plan at Appendix 2—from housing to planning purposes—to enable the delivery of the scheme. This appropriation would allow the Council to exercise its powers to override any third-party rights or interests (subject to appropriate engagement with affected parties), and subsequently re-appropriate the land back to housing use upon practical completion of the development.

The Cabinet Member RESOLVED

1. To approve the appointment of Contractor A, as identified in the Appendix 1 exempt part B of this report, to undertake the new build works for the contract sum as set out in the exempt report.

2. To approve the rents as set out in section 1.5 of the exempt part of this report.

3. To approve the exemption as set out in section 1.6 of the exempt part of this report.

4. To note the engagement and consultation undertaken in relation to this site, as detailed in section 3 of the exempt part of the report.

5. To approve the appropriation of the land, shown edged red on the plan at appendix 2 in the exempt part of the report, from housing purposes to planning purposes pursuant to Section 122 of the Local Government Act 1972, as it is no longer required for the purpose for which it is currently held, and for the purpose of carrying out the works approved under the planning permission for the scheme.

6. To approve the use of the Council’s powers under Section 203 of the Housing and Planning Act 2016 to override any easements and other third-party rights and interests relating to the land edged red on the plan at Appendix 2 in the exempt part of the report that may be infringed by the development approved under the planning permission for the scheme and further described in the exempt part of the report.

7. To delegate authority to the Corporate Director of Culture, Strategy and Communities, in consultation with the Corporate Director of Finance and Resources, to agree and make any necessary compensation payments arising from valid claims relating to third-party rights affected by the development, in accordance with the Council’s scheme of delegation.

8. To approve the appropriation of the land shown edged red on the plan at appendix 2 in the exempt part of the report, from planning purposes back to the Housing Revenue Account (HRA) for housing purposes under Section 19 of the Housing Act 1985 upon practical completion of the development.

9. To approve the total scheme cost as set out in the exempt part B of the report.

10.  To approve the issuance of a Letter of Intent for up to 10% of the contract value, as detailed in the exempt section of the report.

Reasons for decision

Contractor A has been identified through a formal tender process as the preferred contractor to deliver the new build.

There were no known reasons to believe that any third-party rights had been infringed by the development for the reasons set out in the section 6.2 (leading to the exempt part of this report).

This scheme would contribute to the Council’s commitment to deliver high-quality, affordable provision as set out in the exempt part of this report in Haringey.

Alternative options considered

One option considered was to not to proceed with the development, as the Council had no statutory duty to provide such services. However, excluding this site would have undermined the Council’s ability to meet identified local needs.

The opportunity was procured through a competitive tender process using the Council’s Dynamic Purchasing System. This route was recommended by Strategic Procurement based on the contract value and the need to ensure a fair and transparent process.

Alternative procurement options included either a restricted competitive tender to the open market via the Haringey Procurement and Contract System or a direct award to one of the LCP framework providers. These options were rejected in favour of the DPS route, which offered stronger safeguards around quality and pricing through open competition.

In order for the Council to carry out the works under the planning permission, the land must be appropriated for planning purposes pursuant to Section 122 of the Local Government Act 1972. If the Council did not appropriate the site for planning purposes, the works would not be authorised under the planning powers of Part 9 of the Town and Country Planning Act. Also, the Council could not use its powers under Section 203 of the Housing and Planning Act 2016 to override the party interests and rights, and, this would expose the development to potential delays or legal challenges from third-party claims. By utilising its powers under Section 203 of the Housing and Planning Act 2016, the Council has ensured that any third-party rights or easements affected by the development were converted into a right to compensation, rather than a right to seek an injunction. The Council acknowledged the potential rights of third parties and would make compensation payments where a legal basis was established. The Housing Delivery team engaged with local residents throughout the feasibility and design stages, and feedback received was considered by the Planning Committee in its decision-making.

The Council could have opted not to appropriate the land back to housing purposes upon completion of the building works. This option was rejected, as it would have prevented the Council from offering the much needed provision as set out in the exempt part of the report.