Decision

To pay and enter the structural warranty for newbuild MMC Homes at Penning Court, Rambridge Crescent, Salisbury.

Reasons for the decision

1. The decision is to approve payment and enter the structural warranty, following a quote of £xxxx for newbuild flats at Rambridge Crescent.
2. The development of Penning Court, Rambridge Crescent, Salisbury will provide 6 one-bedroom flats, and two-bedroom flat for the provision of TA (temporary accommodation), construction remains underway and is scheduled to complete during Q2 26/27.
3. Prior to the completion of the homes a structural warranty is required to be arranged. In this case, ABC+ is the warranty provider of choice.
4. ABC+ Warranty is a structural warranty and latent defects insurance product commonly used on new-build housing developments. It provides independent technical inspections during construction and long-term protection against major structural defects, giving assurance to us as a landlord that the homes have been built to an acceptable standard.
5. Similar to NHBC and other warranty providers, it offers protection for key structural elements such as foundations, load-bearing walls, floors and roof structures.
6. The development will be covered by an ABC+ 10-Year Residential Warranty with a 2-Year Defects Liability Period, supported by technical inspections through the construction and backed by formal insurance cover.
7. The warranty application, inspection reports, quotations and warranty certification associated with the development are held within the project folder.
8. The warranty provides an initial period during which the contractor, Renelec remains responsible for addressing defects, followed by a longer insurance-backed period covering qualifying structural issues.
9. It is worthy to note that ABC+ Warranty products are accepted by UK mortgage lenders and are currently underwritten by AXA Insurance, providing additional financial security and confidence in the event of a claim.
10. From a development management perspective, the use of ABC+ Warranty helps demonstrate quality assurance, independent technical oversight and risk management throughout the construction process.
11. It provides long-term protection for the Council's housing assets on this development and gives confidence that any qualifying structural defects identified after completion can be addressed through the warranty arrangements.
12. The cost of the warranty is allowed for within the existing capital project budget, and it is recommended that the warranty is entered to allow protection cover to commence at completion of the homes.

I confirm that in making this decision I have considered the following in line with Wiltshire Council’s Constitution:

Key decision requirements: Yes - not a key decision requirement.

Views of relevant cabinet member(s), committee chairman, area board(s): N/A

Consultation with cabinet member(s), the Leader and Scrutiny (for Executive decisions taken under Emergency Powers): Decision not made under emergency powers.

Consultation in accordance with the council’s consultation guidance and the views emanating from that process: Full Consultation Exercise for the development took place in accordance with Planning Policy and Procedure.

Implication of any council policy, initiative, strategy or procedure: I can confirm that quote was assessed by a consultant and internal QS.

Staffing, financial and legal implications: I can confirm that quote was assessed by a consultant and internal QS.

The assessment of any associated risks in accordance with the Council’s risk management strategy: Assessed by means of the Councils HRA Risk Register and Individual Project Risk Register.

Involvement of appropriate statutory officers and/or corporate directors and directors: N/A

Regional or national guidance from other bodies where relevant: N/A

The council’s constitution, including the Procurement and Contract Rules (Part 10) and the Financial Regulations and Procedure Rules (Part 9), all relevant guidance, legislation, codes of practice, and protocols: Yes

Alternative options considered

Not to proceed to payment or enter into the warranty however this would leave the units uninsured as it is very unlikely another warranty provider would accept the homes at this late stage.