All public authorities are exploring new ways of operating which increasingly include collaboration with other partners, whether public or private sector. This agenda can be driven by the pressure to provide services more cost effectively and efficiently. It can also be linked to commercial opportunities which organisations have identified and want to exploit.
New freedoms and flexibilities have also opened the door to new ways of operating and delivering service areas. Public sector organisations are increasingly looking at complex delivery vehicles which involve collaboration with other public sector partners as well as contractual arrangements or corporate vehicles with the private sector.
Analysis of the legal issues involved in the setting up and operating of joint venture arrangements, whether contractual or corporate, involves a number of legal skills, all of which the Bevan Brittan team can provide. These include advice on:
- legal powers to enter partnerships/joint arrangements
- trading and charging powers
- how elected members and officers can safely be involved in joint venture companies
- declarations of interest and potential conflicts
- expertise in regulated procurement and financial regulations including the competitive dialogue procedures
- corporate advice on models of delivery including share and guarantee companies, trusts, CICs, IPSs and LLPs
- issues relating to charitable status of JVs
- commercial support on contractual joint ventures
- employment expertise to support TUPE transfers or secondment arrangements
- pensions advice
- tax implications of different delivery models
- ICT and intellectual property support
- banking and finance advice on borrowing, financial models
- insolvency and recovery
- expert property advice when premises are involved in the arrangements
All our team have extensive experience of working with public sector clients and advising private sector providers who operate in the public sector. We are able to bring to the table a full understanding of the commercial reality of the market and advise you on the reasonableness of the deals you are negotiating.
Solutions to your problems
In the increasingly complex world of innovative service delivery and different models of operating, we have advised clients on the following types of joint venture arrangements:
- a delivery vehicle for a science park involving a number of local authorities, the RDA, a university and private sector partners
- a potential JV between a council and the local FE college to set up a business providing incubator units for new businesses
- a corporate vehicle between four councils to deliver major projects relating to waste and integrated transport across a sub region
- the setting up of a wholly owned local authority company between four unitary councils to deliver Connexions services in a region
- a contractual JV arrangement between a council, the RDA and a football club to ensure infrastructure and public facilities at a new stadium
- the TUPE/secondment issues for private sector bidders in responding to the procurement by a multi council consortium of an arrangement to provide back office services to public sector clients through a newly created public/private JV Co.
- the establishment of Urban Regeneration Companies and City Development Companies through guarantee companies involving the local council(s), the RDA and English Partnerships, to ensure co-ordinated regeneration of an area