Decision details

Regarding the Section 278 agreement, at Monkscroft Villas, between CBC and GCC Highways, we will, in lieu of a bond, deposit the same amount of money with GCC to enable them to complete the Highways works if the developer (CBC) default on completing the highway works.

Following advice from Steve Isaac from One Legal, and given the low amount involved (£25K) and the risk to GCC Highways not having the proposed works completed by CBC being very low.

CBH have instructed E G Carter & Co Ltd through the award of the main JCT D&B contract and these Highway works to form the bell mouth onto Princess Elizabeth Way will be undertaken by their sub-contractor. Quality will be verified by EG Carter & Co Ltd, CBH, the Employers Agent and Clerk of Works who are employed by CBC/CBH, plus GCC Highways will inspect the works to ensure it is complete to their standard.

CBC have a Performance Guarantee Bond in place with EG Carter & Co Ltd for the overall JCT D&B contract for 10% of the Contract Sum, namely £347,985.50. CBC/CBH are also applying 3% retention to EG Carter & Co Ltd interim payments. 

In line with the decision resolved at Cabinet meeting on July 9^th 2019, agenda item 6 – Housing Revenue Account – New Build – Monkscroft Villas Site:

2. Authority be delegated to the Executive Director of Finance & Assets, in consultation with the Borough Solicitor to:

2.1. Conclude the JCT Design and Build contract with E G Carter and Co Ltd.

2.2. Take all necessary steps and undertake all necessary procedures, including entering into any legal arrangements or other documentation as may be required to implement or facilitate the development, including entering into a Grant Agreement with Homes England for the affordable housing dwellings.

Full Performance Bond / Bondsman – given the low sum involved and on the advice of One Legal, plus the additional time and possible legal involvement required to set up the Bond, this was rejected. Steve Isaac of One Legal highlighted that a deposited amount is a usual option for an agreement of this nature.

A draft Section 278 Highways Agreement has been progressed and is dependant on the resolution of the alternative to the bond.

Working with One Legal, GCC Legal department, GCC Highways, EG Carter & Co Ltd and an independently appointed highways consultant called Peter Evans Partnership.