Section one: Contracting authority/entity
one.1) Name and addresses
London Boroug of Havering
Town Hall,Main Road
ROMFORD
RM13BB
Contact
Jumaa Sudi
Telephone
+44 1708433336
Country
United Kingdom
NUTS code
UKI52 - Barking & Dagenham and Havering
Internet address(es)
Main address
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Havering estate regeneration partner - property/asset JV company
two.1.2) Main CPV code
- 45211340 - Multi-dwelling buildings construction work
two.1.3) Type of contract
Works
two.1.4) Short description
[08/04/2021 14:52] Adam Bevan:
LB of Havering ('the Council') entered into a contract for up to 30 years for a partner to form a long-term corporate joint venture ('JV') property vehicle to secure investment and expertise to deliver Havering's housing led regeneration strategy, entered into 27 April 2018 ('the Contract'). The opportunity was advertised in OJEU (2017/S 094-185114) and procured under the Concession Contracts Regulations 2016. Further details of the original Contract are in that OJEU Notice. The Contract includes a Members' Agreement (MA) and Development Agreement (DA) with the JV LLP and other ancillary documents.
two.1.5) Estimated total value
Value excluding VAT: £1,177,000,000
two.1.6) Information about lots
This concession is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £1,177,000,000
two.2) Description
two.2.2) Additional CPV code(s)
- 45111000 - Demolition, site preparation and clearance work
- 45112700 - Landscaping work
- 45112710 - Landscaping work for green areas
- 45112711 - Landscaping work for parks
- 45211300 - Houses construction work
- 45211341 - Flats construction work
- 45211350 - Multi-functional buildings construction work
- 45211360 - Urban development construction work
- 45212000 - Construction work for buildings relating to leisure, sports, culture, lodging and restaurants
- 45213100 - Construction work for commercial buildings
- 45213112 - Shop units construction work
- 45213150 - Office block construction work
- 45223300 - Parking lot construction work
- 65300000 - Electricity distribution and related services
- 70000000 - Real estate services
- 71000000 - Architectural, construction, engineering and inspection services
- 73220000 - Development consultancy services
- 79410000 - Business and management consultancy services
- 90712100 - Urban environmental development planning
two.2.3) Place of performance
NUTS codes
- UKI52 - Barking & Dagenham and Havering
Main site or place of performance
The London Borough of Havering
two.2.4) Description of the procurement
[08/04/2021 15:07] Adam Bevan:
Further info is at https://www.havering.gov.uk/downloads/download/876/veat_notice_supplement_documents
The Council has:
1) Made additional GBP 58.3 million equity funding available to JV. Also, refreshed JV business plan (BP) to include Council forward funding of GBP 45.4 million for phase 1 (in the light of additional 53 affordable housing units and reduction of open market units from 1085 to 934, changes to design and other factors).
2) Refreshed JV BP to remove Delta estate.
3) Refreshed JV BP to include addition of further sites.
4) Amended DA to bring forward timing of demolition of Waterloo Estate and Council providing additional £7.8m financing in place of debt funding (some changes to be made by variation to the DA and a new supplemental dev agreement with JV).
two.2.5) Award criteria
Concession is awarded on the basis of the criteria described below:
- Criterion: Concession is awarded on the basis of the criteria stated in the procurement documents
two.2.7) Duration of the concession
Duration in months
360
two.2.14) Additional information
The duration field takes account of the fact that the concession started on the 11/12/2020.
Section four. Procedure
four.1) Description
four.1.1) Form of procedure
Award procedure without prior publication of a concession notice in the cases listed below
- The procurement falls outside the scope of application of the regulations
Explanation:
The procurement falls outside the scope of application of the directive.
Assessed individually and cumulatively, items 1-5 (as referred to in II.2.4) are all within the scope of the original OJEU/procurement and would not have affected the outcome ('Procurement Outcome').
The Council additionally/alternatively relies on Reg43(1)(a) (clear, precise, unequivocal review clauses), (c) (unforseeability), (e) (non substantial amendments - i.e. there is no material change in character of the contract, no considerable extension of scope, no distortion of competition and no change in the economic balance in favour of the contractor) and also Reg 31(6)(b)(ii) as further described below:
The forward funding described in Change 1 and also Changes 2 and 3 are part of the annual business plan refresh, are within procurement scope and do not result in a change to the Contract.
1) Re. additional equity funding: there is no increase in the Council's peak net investment, no impact on the risk profile and no change in the economic balance. No change to the contract.
Re. forward funding: this is required due to a stagnant housing market eroding land value (impacting viability), build cost inflation, design enhancements, reduction in private sale cross subsidy and more affordable and family sized housing. These features would have applied to all bidders and the Council considers the Procurement Outcome would not have been impacted. Further, schedule 8, para 1.3 included scope to adjust Low Cost Unit Sum pursuant to VFM Standard and Code of Practice of Homes and Communities Agency.
2) Re. removal of the delta estate from current programme; this is a development phasing detail as no commitment was made to developing out the delta estate at this point in time, it was not tested as a sample scheme during the procurement process. Neither bidding behaviour nor Procurement Outcome would have been impacted.
3) Re. additional sites, these were within the OJEU notice scope and are similar to the sample sites tested as part of the procurement. Their delivery is consistent with financial and technical commitments in the tender to apply to subsequent schemes. The addition of further sites was transparently set out in the procurement documentation, is subject to an agreed mechanism and was incorporated into the evaluation questions. The Council alternatively relies on Reg 43(1)(a) (clear, precise, unequivocal review clauses).
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2017/S 094-185114
Section five. Award of concession
Title
Havering Estate Regeneration Partner - Property/Asset JV Company
A concession/lot is awarded: Yes
five.2) Award of concession
five.2.1) Date of concession award decision
11 December 2020
five.2.2) Information about tenders
Number of tenders received: 1
The concession has been awarded to a group of economic operators: No
five.2.3) Name and address of the concessionaire
Wates construction Ltd
Leatherhead
Country
United Kingdom
NUTS code
- UKJ2 - Surrey, East and West Sussex
The concessionaire is an SME
No
five.2.4) Information on value of concession and main financing terms (excluding VAT)
Total value of the concession/lot: £1,177,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
The high court of justice
London
Country
United Kingdom