hca tools for regeneration
TRANSCRIPT
Thriving communities, affordable homes
Thriving communities, affordable homes
Working with Partners to Enable Regeneration
New Delivery Approaches
Presented by Helen O’Doherty
Date 27th July 2010
Thriving communities, affordable homes
New Approaches to Delivery
Delivery Partner Panel– New procurement route– Partnership focussed– Accelerate delivery
Public Land– New delivery tools– Risk Mitigation– A transferable approach
Thriving communities, affordable homes
Delivery Partner Panel
New Players Procurement Cost/Timescales One stop shop
– Development– Construction– Dev Management and other Services
New procurement model Improve Competitiveness Reduce cost and timescales Earlier private sector involvement Regular Engagement / Commercial sense check
Thriving communities, affordable homes
DPP Framework
OJEU Compliant Process 3 Super-Regional Clusters South Panel – 17 Members
– House Builders– Developers– Contractors– RP’s / HA’s– Consortium’s
Financial Check Framework Contract One-Stop-Shop service Tendered Rates 3 year duration – but
contracts can extend beyond
Ardmore First Base Partnership
BDW Trading Ltd (Barratt David Wilson)
Bouygues UK
Carillion Igloo Consortium
Countryside Properties UK Limited
Crest Nicholson Operations Limited
Family Mosaic Home Ownership
Galliford Try PLC
Hadley Mace Limited
JB Leadbitter & Co Limited
Kier Group Limited
Laing O'Rourke Construction Limited
Lovell Partnership Limited
Mi-Space (UK) Limited
Skanska Construction UK Ltd
Taylor Wimpey UK Limited
Wates Construction Limited
Thriving communities, affordable homes
Using the Panel
Contractual arrangements enabling a Local Authorityto use the Delivery Partner Panel
HCA
DPPMember
Framework Contract
Framework Contract
LocalAuthority
Lette
r of A
gree
men
t
Thriving communities, affordable homes
Appointment Process
Mini competition required Reduce numbers through:-
– Phone round and sifting brief
Issue mini project tender and project contract
Financial appraisal Insurances Evaluate Appoint via ITP Project specific and efficient
Thriving communities, affordable homes
Panel Members
17
< 17
3-8
1
Mini-Competition Process
1-2
da
ys
1-3
we
eks
6-8
we
eks
WHOLE SUPER REGIONAL CLUSTER
ALL CAPABLE AND AVAILABLE PANEL MEMBERS
SELECTED PANEL MEMBERS TO TENDER
SINGLE APPOINTED DPP MEMBER
Stage 1Phone/Email
Stage 3Tender
Stage 2Sifting Brief
Thriving communities, affordable homes
Rigorous Panel Selection Process
Significant cost and time savings
Commercial input to help shape proposals
Support and Advice available
Delivery Partner Panel
Thriving communities, affordable homes
Public Land - Rationale
Current housing supply issues
Demand for homes
New way of working neededIdentify new developer partners
De-risk the process
Thriving communities, affordable homes
Public Land: Wider Outcomes for the Sector
Reduce transaction costs across public sector
New delivery models including deferred receipt
Wider range of private sector partners Greater competition driving value & quality Create incentives to bring SPSL sites
forward New skills for industry in low carbon homes Increase capacity in public sector to unlock
development land
Thriving communities, affordable homes
Public Land:Business Model
Key Principles Deferral of land receipt Fair balance of risk and reward Risk sharing linked to scheme revenues and site
super-abnormals Maintaining the principle of value capture
(overage mechanism) Retention of construction costs risk by PSP Flexibility to negotiate key terms
Thriving communities, affordable homes
Public Land :Business Model
Risk Mitigation Principles Deferred land payment Planning and design Section 106 costs identified Enabling cost and works Alignment with LIP priorities Pre-sales – RSL/PRSI PLI enabling funding
– Flexible funding stream• E.g. Gap Funding; Equity Loan; Remediation)
The wider funding question?
Thriving communities, affordable homes
Mini-Competition Appraisal– Establishes benchmark costs, revenues and land value/gap funding requirement– Establishes public sector risk share sum
Pre-development Appraisal– Post planning – pre-start on site– Fix on build cost ceiling (apart from super abnormals)– Estimated revenues– Fix on gap funding requirement
Completion Appraisal– Re-measure revenues – HCA will share in 50% of the shortfall in scheme revenues up
to the max public sector risk share sum (base case assumption)– Cost savings to be shared 50:50 (base case assumption)
Public Land Business Model: Appraisal Process
Thriving communities, affordable homes
Public Land: Legal Toolkit
Heads of Terms Site Development Agreement Building Lease Financial schedule Housing Gap Funding Agreement Equity Loan Agreement State Aid Note
Thriving communities, affordable homes
Further information
Delivery Partner PanelSteve Ball – DPP Panel [email protected]: 01908 35 3642
Deborah Vogwell – Framework Panel [email protected]:01908 35 3905
Public Land Jayne Lomas – PL [email protected]: 01925 64 4792
Helen O’Doherty – Senior Professional Place MakingHelen.o’[email protected]: 01925 64 4663
Thriving communities, affordable homes