Faraday Development Ltd v West Berkshire Council
[2018] EWCA Civ 2532
Independent editorial summary — not the official judgment. Read the full judgment via the source link.
Ratio Decidendi
A local authority that disposes of land to a developer in return for the developer constructing facilities may be entering into a public works contract subject to the procurement rules.
Facts
A developer challenged the council's decision to enter into a land swap arrangement with a third party, arguing the transaction should have been subject to a competitive procurement process.
Judgment Summary
The Court of Appeal held that land transactions can constitute public contracts where they involve the provision of works in return for consideration. Authorities cannot structure arrangements to avoid the procurement rules.
Key Quotes
"The substance of the arrangement must be examined, not merely its form. A land disposal that is in substance a works contract is subject to the procurement rules."
— Lewison LJ
Subsequent Treatment
Important on the characterisation of land transactions for procurement purposes.
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