Infrastructure is an increasingly hot topic across the UK, and compulsory purchase orders (CPOs) can be a key element for many development projects. Adam Lakin, associate director at Bentley, discusses.
From the outside looking in, it is easy to consider only the ‘bigger picture’ of development schemes – with vital stages such as land assembly often overlooked, despite being crucial for success.
CPOs are a pivotal cog within many development projects, with the progression and completion of various schemes reliant on the successful purchase of the land in question. However, despite the importance they hold, there is still a significant knowledge gap of CPOs within the built environment, which not only results in projects not getting off the ground, but also deadlines being missed and financial situations worsening.
THE CONFUSION
CPOs, by their very nature, are complex and confusing, and the process which leads to a successful CPO is a complicated one. One of the main reasons for this confusion is because they’re perceived as a time consuming and costly process which is outdated, remaining largely unchanged since the introduction of the Compulsory Purchase Act in 1965. It would be easy to assume that because the process has generally remained the same, it has become straightforward.
However, this simply isn’t the case. The fact that the original CPO legislation is so outdated has meant that the government has made various tweaks and additions over the years that have actually added to the confusion. For example, there has been further legislation, regulation, guidance documents, rules and case law emerge – as such, the ‘rule book’ for CPOs has become a complex mix of documents.
THE IMPORTANCE OF EARLY ENGAGEMENT
Like with all built environment schemes, early engagement is key. In fact, early engagement is probably even more important when it comes to CPOs when you consider the fact you are dealing with a person, family or business with regards to the sale of their land – during a time when the land isn’t actually for sale.
This is where I find a pragmatic approach is needed. Building up a rapport with the landowner and ensuring they feel involved throughout the whole process will increase your chances of a positive outcome by reducing late design changes and minimising objections. In doing so, project managers can maximise programme efficiencies and reduce costs often experienced at later stages of a project. Those leading on the CPO should also avoid seeing the land as just an ‘asset’. For example, these spaces could be farmland which has been in the family for generations, for which the landowner themselves had plans to pass on to their children. Or maybe the landowner had hoped to develop the land themselves and might be affected by the government’s recent change to remove ‘hope value’ from certain compulsory acquisitions.
How the landowner feels about the land will undoubtedly contribute to how you liaise with them, and early engagement will allow you time to do your research and see the bigger picture.
Early engagement is also important when it comes to the internal project team. I’ve seen too many occasions where a CPO hasn’t been considered from the outset, which means when dealing with the CPO itself, a lot of time and money is wasted.
A CPO must also be considered when planning the design of a project. This could include minimising the overall land take and the number of landowners affected, for example, realigning a scheme just a few meters might avoid a different field with a different owner or avoid interfering with more homeowners’ driveways or gardens etc. This not only makes the CPO process simpler and easier to manage but reduces overall risk to successful project delivery and means that more works are measurable from the outset rather than having generic allowances for undefined works, or worse, overlooked entirely.
PROFESSIONAL SUPPORT
The UK is facing a mammoth task in terms of the delivery of housing and infrastructure over the next five years, and we simply can’t be in a position where we’re missing deadlines and wasting cash which is already at a premium. Having a dedicated professional oversee a CPO will save on both time and money.
Those that have previous experience of dealing with public authorities and landowners when it comes to CPOs will prove invaluable and will allow those in other parts of the supply chain to focus on the task in hand. It’s also worth remembering that public authorities themselves are under pressure and will very much appreciate working with an individual or team who has a full understanding and is working to a mutually beneficial outcome.
Finally, the industry needs to see the management of CPOs as part of the big picture. Considering how a CPO fits into the wider scheme and ensuring it integrates seamlessly into the overall project delivery is key for smooth running of a project. It’s also important that the full project team understand the end goal and avoid working in silos.