This guidance is aimed at managers of council planning services considering involving the private sector in the delivery of the service. It is based on research undertaken with councils and planning consultants for the Audit Commission national study, The planning system: matching expectations and capacity.
Background
Planners are in short supply. Evidence consistently points to a lack of planners available to support the government's policy objectives. While the government is starting to address the problem, its initiatives will not result in sufficient numbers of planners entering the system in the short term. Given this, councils need to look to other solutions to close the gap between what is expected of the system and their limited capacity. To make a significant contribution to their capacity councils need to consider contributions from the private sector.
The Commission has identified two reasons why councils buy planning services from the private sector. The first is to increase or support their capacity to deliver planning services, the second is to buy expertise that the council does not have.
'Are we buying in capacity or expertise?'
The Commission believes that a council's answer to this question has a fundamental effect on a council's approach to the procurement process. If a council is buying extra capacity to support core functions, it will already have the internal expertise to act as the informed client. For example, the manager of a development control department will know if the council's consultants are processing applications to an acceptable standard. However, if the council is buying in expertise or skills not available in-house, it will often find it more difficult to act as an informed client.
This guidance highlights the key considerations which councils need to bear in mind when commissioning consultants for different tasks, in order to maximise the value of such contracts and to effectively manage the risks. It looks at key considerations in relation to buying in capacity and buying in expertise. This is followed by a consideration of the dos and don'ts involved in a more radical outsourcing of planning services: to join a joint venture company.