Section one: Contracting authority/entity
one.1) Name and addresses
Hanover (Scotland) Housing Association Ltd
95 McDonald Road
Edinburgh
EH7 4NS
Telephone
+44 1315577453
Country
United Kingdom
NUTS code
UKM - Scotland
Internet address(es)
Main address
Buyer's address
https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA12742
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.2.2) Additional CPV code(s)
- 66510000 - Insurance services
two.2.3) Place of performance
NUTS codes
- UKM - Scotland
two.2.4) Description of the procurement at the time of conclusion of the contract:
Hanover (Scotland) Housing Association (HSHA) intends to extend the existing Insurance Provision contract due to end 31 July 2023 to the 31 July 2025 with Zurich 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: 2017/S 191-391442
Section five. Award of contract/concession
Contract No
538954
Title
Insurance Services
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
27 June 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
Zurich Municipal
St Vincent Plaza, 7th Floor, 319 St Vincent Street
Glasgow
G2 5LP
Country
United Kingdom
NUTS code
- UKM - Scotland
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: £1,417,444.98
Section six. Complementary information
six.3) Additional information
It should be noted that this Modification notice is intended to inform the market of the intention to modify a contract under Regulation 72 (1) (c) and whilst the PCS system requires an award date prior to the Modification notice publication for the avoidance of doubt it should be noted that the contract has not been entered into prior to the publication of this notice. The contract agreement will not start until 1 August 2023.
(SC Ref:736699)
six.4) Procedures for review
six.4.1) Review body
Edinburgh Sheriff Court & Justice of the Peace Court
27 Chambers Street
Edinburgh
EH1 1LB
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
- UKM - Scotland
seven.1.4) Description of the procurement:
Hanover (Scotland) Housing Association (HSHA) intends to extend the existing Insurance Provision contract due to end 31 July 2023 to the 31 July 2025 with Zurich Ltd who are the current insurance service Broker/provider.
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:
£1,417,444.98
seven.1.7) Name and address of the contractor/concessionaire
Zurich Municipal
St Vincent Plaza, 7th Floor, 319 St Vincent Street
Glasgow
G2 5LP
Country
United Kingdom
NUTS code
- UKM - Scotland
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 Hanover (Scotland) Housing Association (HSHA) 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 two quarters of 2023.
HSHA intend to go out to the marketplace for a new contract for Insurance Provision and this procurement process will commence 2025 Q1 with a target effective date contract date of 1st August 2025.
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: £2,171,038.39
Total contract value after the modifications
Value excluding VAT: £3,588,483.37