Background

A  By virtue of section 1 of the Housing Act 1985 (the 1985 Act) the Authority is designated as a local housing authority.

B  By virtue of section 9(1) and section 9(2) of the 1985 Act the Authority as a local housing authority is empowered to provide Housing Accommodation (as defined in section 56 of the 1985 Act) by inter alia erecting Houses (as defined in section 56 of the 1985 Act) and also to alter, enlarge, repair or improve a House so provided.

C  By virtue of section 10(1) of the 1985 Act, the Authority may fit out, furnish and supply a House provided by it pursuant to section 9 of the 1985 Act with all requisite furniture, fittings and conveniences.

D  By virtue of section 21 of the 1985 Act the general management, regulation and control of local authority housing is vested in and shall be exercised by the Authority.

E  The Authority is empowered to procure the [construction] [refurbishment] of the Properties (as defined in this Agreement) and the provision of associated services pursuant to Section 1 of the Local Government (Contracts) Act 1997 and Section 3 of the Local Government Act 1972.

F  In accordance with the United Kingdom Government's Private Finance Initiative by an advertisement dated [          ] and referenced [            ] in the Official Journal of the European Union the Authority sought bids from appropriately qualified contractors for the [provision] [refurbishment], management and maintenance of the [Dwellings]/[Properties].

G  Through a competitive tender process the Contractor has indicated its willingness, and has been selected by the Authority, to [provide] [refurbish] the [Dwellings]/[Properties] and to manage and maintain the [Dwellings]/[Properties] in accordance with the terms and conditions of this Agreement.

H  The Secretary of State has given his approval to the entering into of this Agreement under Section 27 of the 1985 Act and this Agreement is a Management Agreement for the purposes of that section.

I  The parties intend that this Agreement be a certified agreement for the purposes of the Local Government (Contracts) Act 1997 and the relevant discharge terms are set out in Schedule 10 (Relevant Discharge Terms).

J  The Contractor consents to the issue of a certificate under Section 3 of the Local Government (Contracts) Act 1997.

K  The Authority is a Best Value authority under the Local Government Act 1999 and the functions in respect of which the Authority wishes to procure the management and maintenance of the Properties are Best Value functions.

[NOTE: Only Recitals A, B, E, F, G, I, J and K are relevant for non-HRA projects.]