Scope
Reference
DN7680
Description
The services contract is for high value commercial buildings insurance to provide full reinstatement cover for larger commercial buildings in borough such as shopping centres and other commercial buildings at a competitive premium.
The council ran an open tender process which illustrated that the public sector insurance market does not currently have the appetite or capacity to provide full reinstatement cover for larger commercial buildings.
The Contract is being awarded using the Direct Award (Urgency) process in accordance with Section 41 and Schedule 5 (Direct Award Justifications, (13 and 14)) of the Procurement Act
2023
Contract 1. High Value Commercial Buildings Insurance
Supplier
Contract value
- £1,741,044 excluding VAT
- £1,741,044 including VAT
Above the relevant threshold
Date signed
1 April 2025
Contract dates
- 1 April 2025 to 30 March 2028
- 2 years, 11 months, 30 days
Main procurement category
Services
CPV classifications
- 66000000 - Financial and insurance services
Contract locations
- UKI63 - Merton, Kingston upon Thames and Sutton
Justification for not setting key performance indicators
The procurement is based on insurance cover.
Other information
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Direct award justification
Extreme and unavoidable urgency
The services contract is for high value commercial buildings insurance to provide full reinstatement cover for larger commercial buildings in borough such as shopping centres and other commercial buildings at a competitive premium.
The Contract is being awarded using the Direct Award (Urgency) process in accordance with Section 41 and Schedule 5 (Direct Award Justifications, (13 and 14)) of the Procurement Act 2023
13 Where-
(a)the goods, services or works to be supplied under the public contract are strictly necessary for reasons of extreme and unavoidable urgency, and
(b)as a result the public contract cannot be awarded on the basis of a competitive tendering procedure.
14 For the purpose of paragraph 13, urgency is unavoidable if it-
(a)is not attributable to any act or omission of the contracting authority, and
(b)could not have been foreseen by the contracting authority.
The value of the contract is £1,741,044 .
It is essential that high value commercial buildings insurance is in place to provide full reinstatement cover for larger commercial buildings in borough such as shopping centres and other commercial buildings at a competitive premium.
The council ran an open tender process which began on 7 October 2024 with publication of an FTS notice. No suitable bids were received for Lot 2 Commercial Property Insurance for the London Borough of Sutton, which illustrated that the public sector insurance market does not currently have the appetite or capacity to provide full reinstatement cover for larger commercial buildings.
Supplier
CHUBB EUROPEAN GROUP LTD
- Companies House: FC038001
40 Leadenhall Street
London
EC3A 2BJ
France
Email: richard.clark@chubb.com
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Supported employment provider: No
Public service mutual: No
Contract 1. High Value Commercial Buildings Insurance
Contracting authority
London Borough of Sutton
- Public Procurement Organisation Number: PJMC-1445-VCVG
Civic Offices, St Nicholas Way
Sutton
SM1 1EA
United Kingdom
Email: commercial.procurement@sutton.gov.uk
Website: https://www.sutton.gov.uk/
Region: UKI63 - Merton, Kingston upon Thames and Sutton
Organisation type: Public authority - sub-central government