bRITANNIAVILLAGE RESIDENTS ASSOCIATION

ProposEDMANAGED EXIT PLAN, BRITANNIAVILLAGE, E16

FOR

ERINACEOUS PLC & GEORGE WIMPEY plc

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HANDOVER & MANAGED EXITPLAN forbritanniavillage

As agreed with Hugh McGeever of Erinaceous plc ("Erinaceous") on 14th July 2006, the BVRA has prepared a handover and managed exit plan for Erinaceous and George Wimpey plc ("George Wimpey"). At Appendix 1 to this report you will find a process diagram which sets out the handover plan. The main body of this report provides further information on that plan.

Erinaceous has on behalf of CPM made a general admission of liability in relation to matters raised in (i) the letter of 20 February to George Wimpey and Erinaceous from members of the residents' management companies at BritanniaVillage ("20 February Letter") and (ii) subsequent correspondence. George Wimpey as the principal of CPM is deemed to have made that admission. George Wimpey as the principal of CPM will be the co-defendant in any claim made by members of the residents' management companies against the directors of those companies.

The handover plan will assist Erinaceous and George Wimpey in reducing the scope of the dispute. The BVRA, of which many possible claimants are members, will endeavour to co-operate with Erinaceous and George Wimpey in connection with the handover plan which must be effective, transparent and accountable.

Task Id:Description

1. Project initiation, details of what Erinaceous & George Wimpey PLC should provide are in task 1a. below.

1a.In addition to the information requested in the 20th February letter (and which was not provided in the letter of CPM of 9 March 2006) CPM and George Wimpey is to provide the BVRA with :

  1. Audited management accounts
  2. Summary and details of all contracts currently in force
  3. Service logs
  4. All relevant site plans and legal documentation regarding land ownership; particularly, boundaries and maintenance responsibilities.
  5. .

The items listed above are required for all of the Britannia Village Residents Management Companies; BV’s 1 – 12 and BV General.

1b.Erinaceous and George Wimpey will at their costs appoint a third party consultant (RICS accredited) to manage the handover plan and the necessary public consultation with the residents of BritanniaVillage and other key stakeholders.

1bA detailed report of defects and works to be completed in the adoptable areas has been sent by the BVRA to George Wimpey PLC, CPM have also produced a report. These reports now need to be reviewed and remedial work carried out by George Wimpey PLC at their cost.

1c.As in 1b. above, all remedial works required to bring the adoptable areas up to Newham Councils standard needs completing by George Wimpey PLC, at their cost. A plan needs to be produced giving the residents transparency of the outstanding works and completion dates for the handover of these adoptable areas

2.The third party consultant should produce the service specification and ITT documentation required for selection of a future managing agent. This will be based on residents' input, initially via the BVRA and subsequently via a public consultation which they will run, to ensure all eligible parties are consulted

2a.Full site audit of BritanniaVillage

2b.George Wimpey PLC to complete at their cost; all the outstanding works and any such remedial work necessary from tasks 1b. and 2a.

2c.George Wimpey PLC to liaise with Newham Council (Mayor’s Office)regarding Newham's adoption and / or provision of Newham controlled CCTV for the common areas in BritanniaVillage. This was agreed in principle in a meeting between Sir Robin Wales, Mayor of Newham, and the BVRA in July 2006.

2d.Newham Council, Mayors Office to confirm the level of funding and provide contact details of technical representatives to investigate the most appropriate CCTV solution; integration or provision of new equipment

3.Public consultation in the Britannia Village Hall, to be organised and run by the third party consultant. To provide details of; the proposed service specification from task 2. The proposed ITT process. Then to take input from those eligible on items listed in task 3a.

3a.Items to be covered at the public consultation

  1. Proposed service specification,
  2. Proposed redecorations of property in BritanniaVillage
  3. ITT documents & ITT process
  4. Selection (criteria) and appointment of a new managing agent, including relevant sub contracts where the exit of Erinaceous PLC makes this necessary.
  5. Handover of the Residents Management Companies (RMC’s) to residential control.

3b.Handover of control of the Britannia Village Hall.; George Wimpey to work with the West Silvertown Foundation (WSF) feeding back the agreed business case, process and progress to the third party consultant who will update those eligible at the public consultations.

4.Third party consultant issues and evaluates the ITT for a new managing agent and relevant sub contracts

4a.Third Party consultant to agree a plan and process for the redecoration of property (flats, common areas) in BritanniaVillage.

4b.Redecoration, where appropriate to be managed by the third party consultant in accordance with task 4c.

4.cThird party consultant to provide a complete plan to the redecoration of the village in two stages, a) those areas for which tenders have already been evaluated BV’s 1,2,4,10 b) the remainder of the village.

5.Public consultation in the Britannia Village Hall, to be organised and run by the third party consultant covering items in task 5a.

5a.Items to be covered at the public consultation

  1. Results of the ITT
  2. Process and timescales for appointing the new managing agent.

5b.Third party consultant to manage the appointment of the new managing agent

6A period when both Erinaceous and the new managing agent will run in parallel and resolve and handover issues between the two organisation; covering, missing documentation, systems issues etc.

6a.Resident appointed to shadow during the handover process.

7.Public consultation in the Britannia Village Hall, to be organised and run by the third party consultant covering items in task 7a.

7a.Items to be covered at the public consultation

  1. Site audit results
  2. Final signed off copies of the Management Accounts
  3. Summary and details of all contracts which will be in force after George Wimpey PLC and Erinaceous PLC exit
  4. Process for handover to residential control of the RMC’s
  5. Process for the transfer of the leases and relevant assets to the RMC’s

8Appointment of resident Directors – Managed by George Wimpey PLC who will hold the EGM’s necessary

9Transfer of the leases and relevant assets to the RMC’s by George Wimpey PLC

10Sign off completion of this plan and George Wimpey PLC Exit

11Sign off completion of this plan and Erinaceous PLC Exit

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