Section one: Contracting authority/entity
one.1) Name and addresses
Salix Homes Developments Limited
2 Peel Cross Road
Salford
M5 4DT
Contact
Terry McBride
terry.mcbride@salixhomes.co.uk
Telephone
+44 08002182000
Country
United Kingdom
NUTS code
UKD34 - Greater Manchester South West
Internet address(es)
Main address
one.4) Type of the contracting authority
Body governed by public law
one.5) Main activity
Housing and community amenities
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Design and Construction of 45 New Apartments and 46 New Houses, Kara Street, Salford
two.1.2) Main CPV code
- 45211000 - Construction work for multi-dwelling buildings and individual houses
two.1.3) Type of contract
Works
two.1.4) Short description
Salix Homes Developments Limited are entering into a construction contract with Watson Construction Limited for the design and construction of 45 new build apartments and 46 new build houses in a single phase including external works, drainage and improvements to existing highways. Salix Homes Developments Limited is appointing the contractor following the withdrawal of a previously appointed contractor procured through a call-off under a Framework Agreement
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £14,751,000
two.2) Description
two.2.2) Additional CPV code(s)
- 45211300 - Houses construction work
- 45211340 - Multi-dwelling buildings construction work
- 45232452 - Drainage works
- 45233000 - Construction, foundation and surface works for highways, roads
- 71500000 - Construction-related services
two.2.3) Place of performance
NUTS codes
- UKD34 - Greater Manchester South West
Main site or place of performance
Salford
two.2.4) Description of the procurement
Salix Homes Developments are entering into a construction contract with Watson Construction Limited for the design and construction of 45 new build apartments and 46 new build houses in a single phase including external works, drainage and improvements to existing highways. Salix Homes Developments Limited is appointing the contractor following the withdrawal of a previously appointed contractor procured through a call-off under a Framework Agreement.
two.2.11) Information about options
Options: No
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Negotiated without a prior call for competition
- Extreme urgency brought about by events unforeseeable for the contracting authority
Explanation:
1. Salix Homes Developments Limited is satisfied the tests permitting reliance on Regulation 32(2)(c) are met:
A. As far as is strictly necessary: Following a call-off under Regional Housing Framework, Salix Homes Developments Limited appointed a previous contractor for the design and construction of the works. Two weeks prior to contract award, the contractor withdrew from the contract for internal reasons.
B. There are genuine reasons for extreme urgency: Salix Homes Developments Limited must award the contract to avoid the loss of funding from Homes England and to ensure that the scheme can be delivered by June 2022.
C. The events that have led to the need for extreme urgency were unforeseeable: The late withdrawal of the previous contractor was unforeseeable. Salix Homes Developments Limited has undertaken an appraisal of the market and considers that there is no alternative available given the construction sector conditions including with restrictions and limitations on supply of both contractors and materials due to COVID-19.
D. It is impossible to comply with the usual timescales in the PCR: Salix Homes Developments Limited has explored alternative frameworks including making a direct award under a framework. Supplier capacity is currently limited meaning this was not a feasible approach in view of the urgency..
Salix Homes Developments Limited considered running an accelerated procedure. However, due to urgency, there was no time to run an accelerated procurement that would have allowed Salix Homes Developments Limited to deliver the scheme within the timescales required by Homes England as funder and in view of other commercial and contractual obligations requiring practical completion of the project by June 2022. Any breach of such arrangements could lead to incurring unnecessary expense for the parties involved including the Local Authority as proposed purchaser of part of the scheme on completion.
Having undergone one failed procurement, given the urgency, Salix Homes Developments Limited needed to ensure a solution could be achieved in a time critical fashion in order to satisfy funding conditions before the funding is withdrawn. The situation is not attributable to the contracting authority – Salix Homes Developments has not done anything to cause or contribute to the need for extreme urgency as the previous contractor withdrew from the contract for their own reasons.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
Section five. Award of contract/concession
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
22 April 2021
five.2.2) Information about tenders
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
Watson Construction Limited
Spark Studio, 208-210 Great Clowes Street
Salford
M5 2ZS
Telephone
+44 1612418787
Country
United Kingdom
NUTS code
- UKD34 - Greater Manchester South West
Internet address
The contractor/concessionaire is an SME
Yes
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: £14,751,000
Section six. Complementary information
six.3) Additional information
(MT Ref:222620)
six.4) Procedures for review
six.4.1) Review body
Public Procurement Review Service
Cabinet Office
London
Country
United Kingdom