2.10.2 What strategies could be applied in the exemptions?

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The following are examples of some of the strategies that could be applied.

Land Purchase

Contracting authorities may require to purchase land for a series of reasons such as a new road system, water treatment works, office accommodation and so on.  The normal practice is to take professional advice on benchmark costs and enter into negotiations with the land owner.  Contracting authorities normally retain or can access, current land values and sale prices and therefore should be able to assess if the deal will provide VFM.  It is always prudent if possible to have more than one solution and to consult with internal, local or national experts.

 

Buildings

Contracting authorities occassionally require additional buidings either for short or long terms needs.  There are a number of possible options to aquiring a building depending on the nature and duration of the requirements, including: rent, lease, licence or outright purchase. It is important to carryout detailed market research to assertain availability and levels of competition within the desired locations. Each option should be costed, including operation and relocation costs over the estimated whole life of the requirement to ensure the best value for money is obtained. (options to rent lease or buy are dealt with in more detail in section 2.10.4)

 

Research & Development

Research and development (R&D) carried for the benefit of a contracting authority can be exempt from the Directives.  It is important that contracting authority clearly defines the nature of the R&D from the outset and what measured benefits they hope to achieve along with the timescales in which to achieve them.  If there are a number of Public & Private sector organisations that could carry out the R&D it is advisable to subject the project to competition to ensure you are achieving VFM.


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