Covent Garden owner eyes range of initiatives to improve T&Cs
Developer Capital & Counties has begun sounding out firms about overhauling its contract terms and conditions which would see payment times cut while the possibility of getting rid of retentions has also been raised.
Building understands the FTSE 250 firm has been speaking to all parts of its supply chain in the past few months about the move.
One source said: “This is quite revolutionary stuff, certainly getting rid of retentions, and I think Capco are wanting to make sure they get the best people working for them.”
According to its last set of results for the year to December 2021, the firm, which owns 1.1 million sq ft of space in London’s Covent Garden comprising just over 500 units, had a portfolio valuation of £2.4bn.
In its 2021 annual report, the firm said it aims to pay suppliers within 30 days, adding: “We develop and maintain constructive relationships with our suppliers, including those that help us manage and develop our assets, and professional service providers. We operate a responsible procurement policy and sustainable development framework.”
Other initiatives believed to be being looked at include removing liquidated and ascertained damages.
The discussions are understood to be at a preliminary stage and Capco declined to comment further beyond saying: “Capco have always sought to get the best out of our supply chain and contract fairly.”
Capco, which is due to release its interim results at the start of August, and another West End landlord, Shaftesbury, which manages Chinatown, have agreed to merge creating a new company, Shaftesbury Capital. It will have a portfolio of properties valued at about £5bn.