Re-procuring industrial estate contract could cost council £50,000
Council's previous agreement with developer for major regeneration was unlawful
TAXPAYERS could be hit with a bill of up to £50,000 if West Berkshire Council decides to re-procure the contract for the redevelopment of the London Road Industrial Estate (LRIE).
In 2015, the council entered into an agreement with developer St Modwen to carry out a major regeneration of the area.
However, there was a legal bombshell last year when the Court of Appeal ruled the council had not followed the correct procurement process when it signed the deal.
The court said the development agreement constituted a ‘public works contract’ and therefore it should have been put out to tender.
As a result, the agreement was declared ineffective and the council now has to go back to square one.
The council says it is now “considering the best way forward”.
At a meeting on Thursday, December 20 Jeff Brooks (Lib Dem, Thatcham West), asked what the estimated internal and external costs for re-procuring the contract would be.
The council’s executive member for corporate services, Dominic Boeck (Con, Aldermaston), replied: “Depending on how we go forward, we estimate the costs will be between roughly £35,000 to £50,000.”
Mr Brooks said: “That’s about one man-year of effort, so I wouldn’t mind a breakdown on how you get to that.”
Mr Boeck replied: “We don’t have a clearly-agreed way forward.”
Mr Brooks, unimpressed with the answer, replied: “But you got to £35,000 to £50,000?”
At which point council leader Graham Jones interjected, saying: “The rules haven’t changed. It is a question and a supplementary, not a conversation.
“I think you’ve had a question, which has been answered and a supplementary.”
Mr Brooks hit back: “I am a councillor, not a member of the public.”
Mr Jones interrupted: “I’m sure we can have a conversation outside the meeting.”
An agitated Mr Boeck replied: “The question said, very clearly, what are the estimated internal external costs?
“When I gave councillor Brooks an estimate, he then required a detailed breakdown.”
