The Cabinet Member with the Resources Portfolio introduced the report of the Chief Executive (previously circulated) requesting that consideration be given to this Council paying the Neasham Road Joint Venture (JV) Ltd an uplift in building costs impacting on 17 dwellings, as a result of revisions to Part L and Part F of the Building Regulations.
The submitted report stated that approval had been given to establish a new Joint Venture Company (JVC) between Esh Homes Ltd and the Council (Minute C29/Sep/20 refers); the Neasham Road JV Ltd, had provided the infrastructure to open up the site at Neasham Road and build and sell homes on parts of the site; and that the development of 155 new homes on Site A was well underway.
It was reported that at the time contracts were completed with the Neasham Road JV Ltd to start on site building out Site A, there were future changes anticipated in respect of Part L and Part F of the Building Regulations; it was not clear as to when those changes would be introduced and what the financial implication would be; if an allowance had been made for those anticipated costs at the time of entering into contracts, the deductions would have been significant; and that mitigation measures had subsequently been undertaken by the Neasham Road JV Ltd to minimise the liability.
Reference was made at the meeting to whether a review of other Joint Ventures had been undertaken in respect of the changes to Part L and Part F of the Building Regulations and whether the retail price of the 17 properties would be amended. The Cabinet Member with the Resources Portfolio responded thereon.
RESOLVED - That the payment to Neasham Road Joint Venture Limited of the uplift in building costs in respect of Part L and Part F Building Regulations, as detailed in Appendix 2 of the submitted report, be approved.
REASON - To ensure that Neasham Road JV Ltd are reimbursed for the costs associated with complying with Building Regulations.