Purpose

During the Development Agreement negotiations
with Legal and General (LandG) and BCC for Temple Island, LandG
requested that the Council provide a Warranty from the Strategic
Partner. Under the CCS Management Consultancy Framework that
Arcadis is appointed through, it is not required to provide this
warranty. The terms requested in LandG’s Warranty include
additional liability, duration and other enhanced provisions, which
are more akin to the commercial than the public sector
market.
The calculation methodology was agreed that Arcadis Charges would
reflect the commercial market where fee reimbursement (due to
differing profile of risk) tends to be 10% higher. This is
reflective in Arcadis’ internal overhead recovery when acting
for the commercial sector. The Council must obtain this Warranty to
satisfy the Conditions of the Development Agreement with LandG. The
project has undertaken due diligence in meetings with Arcadis in
April and May 2023 and sought Legal counsel to confirm this route
to procure a warranty in May 2023.

Content

Approval to purchase the Collateral Warranty
from Arcadis for Temple Island Enabling Works Professional Services
contract using contingency funds.