Contract

Insurance Services

  • Clydesdale Housing Association Ltd

F20: Modification notice

Notice identifier: 2023/S 000-011452

Procurement identifier (OCID): ocds-h6vhtk-03c287

Published 21 April 2023, 10:59am



Section one: Contracting authority/entity

one.1) Name and addresses

Clydesdale Housing Association Ltd

39 North Vennel

Lanark

ML11 7PT

Email

Eileen.Wilson@clydesdale-housing.org.uk

Telephone

+44 1555665316

Country

United Kingdom

NUTS code

UKM95 - South Lanarkshire

Internet address(es)

Main address

www.clydesdale-housing.org.uk

Buyer's address

https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA15565


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Insurance Services

two.1.2) Main CPV code

  • 66510000 - Insurance services

two.1.3) Type of contract

Services

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UKM95 - South Lanarkshire

two.2.4) Description of the procurement at the time of conclusion of the contract:

Clydesdale Housing Association (CHA) intends to extend the existing Insurance Provision contract due to end 31 March 2024 to the 31 March 2026 with Marsh Ltd who are the current insurance service Broker/provider.

two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession

Duration in months

24

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.2) Administrative information

four.2.1) Contract award notice concerning this contract

Notice number: 2018/S 220-503711


Section five. Award of contract/concession

Contract No

001

Title

Insurance Services

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract/concession award decision:

21 April 2023

five.2.2) Information about tenders

The contract/concession has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor/concessionaire

Marsh Limited

Ground Floor West, 300 TVP2, Thames Valley Park Drive

Reading

RG6 1PT

Country

United Kingdom

NUTS code
  • UKJ1 - Berkshire, Buckinghamshire and Oxfordshire
The contractor/concessionaire is an SME

No

five.2.4) Information on value of the contract/lot/concession (at the time of conclusion of the contract;excluding VAT)

Total value of the procurement: £238,866


Section six. Complementary information

six.3) Additional information

(SC Ref:729993)

six.4) Procedures for review

six.4.1) Review body

Glasgow Sheriff Court and Justice of the Peace Court

1 Carlton Place

Glasgow

G5 9TW

Country

United Kingdom


Section seven: Modifications to the contract/concession

seven.1) Description of the procurement after the modifications

seven.1.1) Main CPV code

  • 66510000 - Insurance services

seven.1.3) Place of performance

NUTS code
  • UKM95 - South Lanarkshire

seven.1.4) Description of the procurement:

Insurance Services

seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession

Duration in months

24

seven.1.6) Information on value of the contract/lot/concession (excluding VAT)

Total value of the contract/lot/concession:

£238,866

seven.1.7) Name and address of the contractor/concessionaire

Marsh Limited

Ground Floor West, 300 TVP2, , Thames Valley Park Drive

Reading

RG6 1PT

Country

United Kingdom

NUTS code
  • UKJ1 - Berkshire, Buckinghamshire and Oxfordshire
The contractor/concessionaire is an SME

No

seven.2) Information about modifications

seven.2.1) Description of the modifications

Nature and extent of the modifications (with indication of possible earlier changes to the contract):

This Modification Notice relates to the extension of the existing Insurance Provision contract. Having sought advice, to meet our statutory regulatory requirements as a Registered Social Landlord, these public contracts shall be modified and awarded under Regulation 72 (1) (c) utilising the Modification of contracts during their term “by circumstances Clydesdale Housing Association (CHA) could not have foreseen”.

The insurance market for social housing providers has always been quite restricted, however in the field of property and liability this has hardened severely and quickly since the start of 2023. This has been accelerated by the departure of two main insurance providers to the Sector over the last 6 months, meaning the already limited capacity is much reduced. This has resulted in unsustainable market conditions, and we have seen insurers react this year applying significant rate increases on Renewals during the first quarter of 2023.

CHA intend to go out to the marketplace for a new contract for Insurance Provision and this procurement process will commence 2025 Q3 with a target effective date contract date of 1st April 2026.

seven.2.2) Reasons for modification

Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee.

Description of the circumstances which rendered the modification necessary and explanation of the unforeseen nature of these circumstances:

This informed decision based on; the ongoing insurance marketplace uncertainty reflective of the post-Brexit economic environment, the far-reaching impact of the war in Ukraine, recent challenges faced by RSL’s relating to all services, and the current cost-of-living pressures; while concurrently seeking to ensure effective continuity of our insurance services to meet our statutory regulatory requirements.

seven.2.3) Increase in price

Updated total contract value before the modifications (taking into account possible earlier contract modifications, price adaptions and average inflation)

Value excluding VAT: £380,359.62

Total contract value after the modifications

Value excluding VAT: £648,064.30