In Roanne [2007] the ECJ held that a property development agreement between a council and a development company was covered by the Public Contract Regs, and accordingly should have been tendered and awarded in accordance with them. The result of that decision is that many contracting public authorities will now insist that Reg-compliant procedures are followed when they get involved in development projects.

Given the length of time that property regeneration schemes can take, and the amount of time that might have to be invested by a private developer, the prospect that, prior to signing any development agreement, the LA must first follow an advertised process inviting third-parties from across the EU to take part, may well not appeal to developers (or indeed to LA’s themselves).

In deciding whether Public Contract Regs 2006 apply, you have to consider:

Needless to say, this can prove to be a complex area. But, the key point to appreciate is that any development contract involving a public body may well have to comply with the 2006 Regs. For an introductory article see [2009] 223 PLJ 6.