At the risk of alienating readers with my first sentence, this column is about OJEU.
The scourge of many in the development industry, OJEU has long been a cause for heavy sighs and sarcastic quips. It is bemoaned by developers as a lengthy and onerous process that often is not worth the time when bidding for projects on public sector land. It is, however, hugely important if our industry is to thrive.
A recent case in Winchester brought OJEU back into the limelight, causing several councils to review existing development agreements and delayed schemes, pending the procurement question. OJEU has seen continued interest in recent weeks as some people have voiced hopes that leaving the EU will mean that we can ditch the process while retaining the principle.
Indeed, the principle behind OJEU is a good one. It allows public bodies to award contracts in a fair and transparent way that ensures best value for the land in question. The reality, however, is more troublesome.
The problems with the process are twofold. First, it is over-used. Local authorities, fearing that they might not get best value, invite legal challenge, or jeopardise grant funding, often use the full OJEU process when it is not required. Second, it is a hugely complex process. Combined, these two problems mean that many sites are put out to tender unnecessarily, and developers are deterred from investing. Why expend significant resource going through the process when you might not win the tender?
The fact that developers are being deterred from investing in the regeneration of towns and cities is one very strong reason to tackle the problems with procurement. The fact that local authority planning departments are strapped for resources already, and do not need to be further burdened by difficult tendering processes when not necessary, is another.
OJEU is, of course, an area that derives from EU law and practice and so therefore will be affected by the Brexit process, but it is unlikely to change any time soon.
In a bid to help educate both the public and private sectors about when and how to deploy OJEU, the BPF has teamed up with the local government bodies and trade associations.
At the BCSC conference in Manchester later this month, we will be launching an updated version of the OJEU flowchart that we devised three years ago.
With devolution deals on the agenda, and the possibility of new mayors across the country who are focused on delivering regional growth, the landscape is very different to that of 2013, and encouraging efficiency and partnership is more important than ever.
The launch will be followed by round tables across the country in the autumn where we will talk to local authorities to help them to engage with the process.
It is not just local authorities we are targeting though. The private sector has its part to play and must be willing to engage and work in partnership with councils to understand the process.
To that end, we urge you to read and share the revised guidance online when it comes out in a few weeks. Attend our launch event. Get involved with our round tables. Talk to local authorities and point them in the right direction.
Melanie Leech is chief executive of the British Property Federation
