The application of the public contracts directive to development agreements and planning obligations following Auroux v Roanne

Journal of Planning and Environment Law

Volumn , Issue 8, 2008, Pages 1072-1089

  Elvin, David ^a   Banner, Charles ^a  

^a NONE

Author keywords

Development; Directives; EC law; Public workrs contracts; Urban regeneration

Indexed keywords

ECONOMIC REGENERATION; RENEWAL POLICY; STANDARD (REGULATION); TOWN PLANNING; URBAN DEVELOPMENT; URBAN RENEWAL;

EURASIA; EUROPE;

EID: 48649085578     PISSN: 03074870     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (57)

1. See, e.g., Standard Commercial Property Securities Ltd v Glasgow CC 2006 S.L.T. 1152 per Lord Hope at [11]-[23] and Lord Rodger at [48] et seq.,
2. and Sainsburys' Supermarkets Ltd v Secretary of State & Bexley LBC [2001] EWHC Admin 323 at [3].
3. See, e.g., of the Local Government Act 1972 ss. 123-128, ODPM Circular 06/03 and Commission Communication on State aid elements in sales of land and buildings by public authorities [1997] OJ C209/3.
4. R. v Brent LBC Ex p. O'Malley (1997) 30 H.L.R. 328.
5. Corrected, owing to a clerical error in Art.78, by Directive 2005/75.
6. The current range of thresholds (from £679k to £3.497 million) is set out at www.ogc.gov.uk /procurement-policy∠d_application_of_eu_ rules_eu∥ocurement_thresholds.asp [Accessed May 13, 2008]. It seems likely that most, if not all, development agreements for substantial projects will exceed these thresholds.
7. The Directive consolidates and replaces the earlier directives an public supplies, public services and public works - including Directive 93/37 Co-ordination of procedures for the award of public works contracts (as amended by Directive 97/52). In the UK, the Regulations replace the Public Works Contracts Regulations 1991, in order to implement the new Directive. For the purposes of this article, the case law under the earlier Directives and Regulations remains relevant, as explained below.
8. Auroux v Commune de Roanne (Case C220/05) [2007] All ER. (EC) 918.
9. Public Works Directive Art. 1(a) defined "public works contracts" as "contracts for pecuniary interest concluded in writing between a contractor and a contracting authority ... which have as their object either the execution, or both the execution and design, of works related to one ofthe activities referred to in Annex II or a work defined in (c) below, or the execution, by whatever means, of work corresponding to the requirements specified by the contracting authority". The definition of "work" in Art.1(c) was "the outcome of building or civil engineering works taken as a whole that is sufficient of itself to fulfil an economic and technical function".
10. See also reg.3 of the 2006 Regulations.
11. " Further, bodies not within the list in Annex I but within the general definition are still covered: see Commission v Spain (Case C283/00) [2003] E.C.R. 1-11697.
12. " See, e.g. Marleasing SA v La Comercial Internacional de Alimentación SA (Case C106/89) [1992] 1 C.M.L.R. 305
13. and Webb v Emo [1993] W.L.R. 49 at 59.
14. The French version refers to "A titre onéreux" and the Italian "a titolo oneroso" which may suggest valuable consideration. However, if the concept is simply one ofsufficient consideration to make the agreement binding, this might well include indemnity arrangements.
15. Regula6ons reg.2(1) - definition of "public works contract".
16. Ordine degli Architetti (14 Scala) (Case C399/98) 12001] E.C.R. I-5409 at [85].
17. Auroux v Commune de Roanne [2007] All E.R. (EC) 918 at [45].
18. " See also Art.1(8) of the Directive.
19. Gestion Hotelera Internacional (Case C331/92) [1994] E.C.R. I-1329.
20. La Scala [2001] E.C.R. I-5409.
21. O'Malley (1997) 30 H.L.R. 328.
22. O'Malley (1997) 30 H.L.R. 328 at 354-355.
23. O'Malley (1997) 30 H.L.R. 328 at 373.
24. Auroux [2007] All ER. (EC) 918 at [47], see below.
25. La Scala [2001] E.C.R. I-5409 at [55].
26. La Scala [2001] E.C.R. I-5409 at [66].
27. La Scala [2001] E.C.R. I-5409 at [71].
28. La Scala [2001] E.C.R. I-5409 at [73].
29. La Scala [2001] E.C.R. I-5409 at [100].
30. Auroux [2007] All ER. (EC) 918.
31. Now Art.2(b) of the Directive as transposed by reg. 2 of the Regulations.
32. Auroux [2007] All E.R. (EC) 918 at [37].
33. Auroux [2007] All E.R. (EC) 918 at [33].
34. Auroux [2007] All ER. (EC) 918 at [39].
35. Auroux [2007] All E.R. (EC) 918 at [38].
36. On this point the ECJ referred back to its earlier decision in Ballast Nedam Groep (Case C-389/92) [1994] E.C.R. 1-1289 at [13],
37. and Holst Italia (Case C176/98) [1999] E.C.R. I-8607 at [26].
38. Auroux [2007] All E.R. (EC) 918 at [40].
39. "Now Art.2(b) ofthe Directive as transposed by reg.2 of the Regulations.
40. Auroux [2007] All E.R. (EC) 918 at [41].
41. Auroux [2007] All E.R. (EC) 918 at [42].
42. Auroux [2007] All E.R.. (EC) 918 at [45].
43. Auroux [2007] All E.R. (EC) 918 at [46].
44. Auroux [2007] All E.R. (EC) 918 at [531, [54] and [57].
45. Auroux [2007] All ER. (EC) 918 at [50]-[52].
46. Auroux [2007] All E.R. (EC) 918 at [55].
47. Now Art.1(3) of the Directive as transposed by reg.2 of the Regulations.
48. Auroux [2007] All E.R. (EC) 918 at [56].
49. Auroux [2007] All E.R. (EC) 918 at [37], expressly following Gestion Hotelera.
50. Auroux [2007] All RR. (EC) 918 at [41].
51. Auroux [2007] All E.R. (EC) 918 at [42].
52. Auroux [2007] All E.R. (EC) 918 at [38].
53. Auroux [2007] All E.R. (EC) 918 at [45].
54. Auroux [2007] All E.R. (EC) 918 at [57].
55. Which may be the better course in the light of the position as it now appears with regard to procurement, as well as being consistent with DCLG policy only to use planning obligations where the matters cannot be stipulated by condition: see, e.g., ODPM Circular 05/05 paras B2 and B51. The difficulties thrown up by procurement do appear more likely to generate problems where a developer may offer a wide range of community benefits more than may arguably be required in order to mitigate the impacts of the development in order to facilitate the removal of objections (subject of course to the principles set out in 05/05, e.g. at paras B6, B7 and 139).
56. Auroux [2007] All E.R. (EC) 918 at [42].
57. La Scala [2001] E.C.R. I-5409 at [55].