Scope
Reference
14500
Description
Royal Pavilion and dome complex buildings and content insurance provision
Contract 1
Supplier
Contract value
- £657,552 including VAT
Above the relevant threshold
Earliest date the contract will be signed
28 March 2025
Contract dates (estimated)
- 1 April 2025 to 31 March 2028
- 3 years
Main procurement category
Services
CPV classifications
- 66510000 - Insurance services
Contract locations
- UKC - North East (England)
- UKD - North West (England)
- UKE - Yorkshire and the Humber
- UKF - East Midlands (England)
- UKG - West Midlands (England)
- UKH - East of England
- UKI - London
- UKJ - South East (England)
- UKK - South West (England)
Participation
Particular suitability
Voluntary, community and social enterprises (VCSE)
Other information
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Direct award justification
- Single supplier - technical reasons
- Extreme and unavoidable urgency
In late December, the council's current building insurer notified their intention to reduce coverage for the Royal Pavilion and Dome Complex by 90% from 1st April 2025, while simultaneously increasing the annual premium by 152%. This indicated the insurer's intent to withdraw from this high-value risk.
The Royal Pavilion and Dome Complex, a Grade 1 listed cultural and iconic asset, is central to Brighton & Hove's identity and attracts significant public visitation.
Due to the critical need for continuous insurance coverage, the following factors necessitate a direct award without a standstill period:
• Urgent Risk Mitigation: The council faced an imminent risk of significant underinsurance from 1st April 2025. Any lapse in adequate cover would expose the council to unacceptable financial and reputational risks, given the asset's value and public importance.
• Specialised Market: Insurance brokers confirmed a severely limited market for heritage site insurance. This market is distinct from the general public sector insurance market. The specialised insurers within this market do not participate in standard framework tenders due to the time constraints and the unique risk profiles involved.
• Time Constraints: The council initiated immediate discussions with legal, finance, procurement, and our insurance broker in early January to assess options. A property risk evaluation survey, necessary to provide insurers with essential risk information, was conducted in late January, with results received in mid-February. This timeframe precluded the possibility of a compliant tender process being completed in time for the contract to be in effect by the 1st April 2025 deadline.
• Single Supplier Justification: A rapid market exercise, conducted by our brokers, yielded a single viable bid from Ecclesiastical Insurance. Ecclesiastical Insurance is a leading UK specialist in insuring heritage properties, possessing the necessary expertise, underwriting capacity, and claims handling capabilities to meet the unique requirements of the Royal Pavilion and Dome Complex. Their expertise with grade 1 listed buildings, makes them uniquely able to provide the required cover.
Supplier
ECCLESIASTICAL INSURANCE OFFICE PUBLIC LIMITED COMPANY
- Companies House: 00024869
- Public Procurement Organisation Number: PTLT-9325-HBMW
Benefact House 2000 Pioneer Avenue
Gloucester
GL3 4AW
United Kingdom
Email: london@ecclesiastical.com
Website: http://www.ecclesiastical.com
Region: UKK13 - Gloucestershire
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): Yes
Contract 1
Contracting authority
Brighton and Hove City Council
- Public Procurement Organisation Number: PNNH-3312-CQGT
Hove Town Hall, Norton Road
Hove
BN3 3BQ
United Kingdom
Region: UKJ21 - Brighton and Hove
Organisation type: Public authority - sub-central government