ARTICLE · 22 OCTOBER 2009

OGC Publishes Guidance On The Application Of Procurement Rules To Development Agreements

CMS Cameron McKenna Nabarro Olswang

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The Office of Government Commerce (OGC) has published its long awaited preliminary guidance on the application of the public procurement rules to development agreements between public bodies and developers.

United KingdomGovernment, Public Sector

David Marks

Mark Heighton

The Office of Government Commerce (OGC) has published its long awaited preliminary guidance on the application of the public procurement rules to development agreements between public bodies and developers.

The guidance

The guidance follows a judgment given in 2007 by the European Court of Justice in the case of Auroux v Roanne (C-220/05) which concerned the application of the public procurement rules to a contract granted by the French municipal authority of Roanne to a semi-public body under national law without a competitive process. Following Auroux, there has been widespread concern about the application of the procurement rules to land development agreements.

The OGC's guidance is not definitive and does not provide the certainty that industry has been calling for. The guidance is subject to further pronouncements from the European Commission on this issue, which are expected in late 2009 or early 2010.

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