Section one: Contracting authority/entity
one.1) Name and addresses
VIVID
Peninsular House, Wharf Road
Portsmouth
PO2 8HB
Contact
Victoria Harfield
victoria.harfield@vividhomes.co.uk
Telephone
+44 2392896815
Country
United Kingdom
Region code
UKJ3 - Hampshire and Isle of Wight
Internet address(es)
Main address
Buyer's 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
Deed of Variation in relation to construction contract for the development at North Town
Reference number
DN166897
two.1.2) Main CPV code
- 45000000 - Construction work
two.1.3) Type of contract
Works
two.1.4) Short description
Vivid intends to enter into a deed of variation with Hill Partnership Limited ("Hill"), the effect of which will extend the duration of an existing construction contract between Vivid and Hill (the "Underling Contract") by 100 weeks, and which will increase the value of the Underlying Contract by approximately £8,000,000 (eight million pounds).
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: £8,000,000
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKJ3 - Hampshire and Isle of Wight
two.2.4) Description of the procurement
Vivid intends to enter into a deed of variation with Hill Partnership Limited ("Hill"), the effect of which will extend the duration of an existing construction contract between Vivid and Hill (the "Underling Contract") by 100 weeks, and which will increase the value of the Underlying Contract by approximately £8,000,000 (eight million pounds).
The Underlying Contract is in respect of a regeneration scheme in Aldershot for 215 dwellings consisting of houses, maisonettes and flats at North Town under a JCT Design and Build Contract. The variation is limited to the construction of 30 new homes and 1 community space under the Underlying Contract.
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
Award of a contract without prior publication of a call for competition in the cases listed below
- The procurement falls outside the scope of application of the regulations
Explanation:
This VTN gives notice that Vivid is entering into a deed of variation (the "Contract") to award additional works to Hill. The estimated increase in the value of the Underlying Contract is estimated to be £8,000,000 (eight million pounds). A procurement procedure is not necessary on the basis that the award of the Contract is permitted pursuant to regulation 71(1)(e) of the Public Contracts Regulations 2015 (the "Regulations").
The Contract will award additional works to Hill and will have the effect of modifying the Underlying Contract in accordance with Regulation 72 of the Regulations.
Whereas the Underlying Contract had an original value of £31,776,193.36 (thirty one million, seven hundred and seventy six thousand pounds and one hundred and ninety three pounds and thirty six pence across a full possible 143 week term, the Underlying Contract will be varied in order to extend the duration of the
Underlying Contract by a period of 100 weeks, and the estimated value of the Underlying Contract is increased by £8,000,000 (eight million pounds).
This modification is being made in accordance with regulation 72(1)(e) and 72(8) of the Public Contracts Regulations 2015. Namely, the proposed modification is not substantial within the meaning of regulation 72(1)(8) on the basis that:
1. the modification does not render the contract materially different in character - the proposed modification remains limited to the same type, scope and nature of works, and will be delivered in the same geographic region. There is just a small increase in the number of homes to be constructed by Hill.
2. the modification does not introduce conditions which would have (a) allowed for the admission of other candidates, (b) allowed for the acceptance of another tender, or (c) attracted additional participants in the procurement procedure - the change in value of the opportunity is not a significant change and is unlikely to have changed the outcome of the procurement. Further, the additional units to be constructed are located in a constrained site in close proximity to other phases which are still being completed by Hill, and this presents significant complexity of developing this Phase as a standalone project in light of those circumstances..
3. The modification does not change the economic balance in favour of the contractor in a manner which was not provided for in the contract - Vivid has satisfied itself that the estimated compensation for the additional works are reflective of market costs and do not amount to an over-compensation of the works to be provided.
4. As per our comments at 1. above, the modification does not extend the scope of the contract considerably. For the reasons set out above, the proposed modification does not constitute a substantial modification and is permitted by regulation 72(1)(e) and 72(8) of the Public Contracts Regulations 2015.
Hill are currently on site for construction works for an earlier phase of the development project and have a well-established site set up. As Hill are already set up and understand the difficulties and constraints of the site, if there were to be a change of contractor Vivid would face significant duplication of mobilisation costs and duplication costs in order for the new contractor to get up to speed with the site's difficulties and constraints.
Part of the proposed works include the provision of open space which is currently being used by Hill as site set-up and as a compound. This area will not be released until completion of Hill's existing works. Given the location of the proposed works on the site, there is extremely limited space outside of the building footprint which can be used for site set-up. To build out the proposed works economically will require a delay to the open space construction of works already being provided by Hill, and the continued use of this area for site set-up, compound use and temporary accommodation.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2016/S 147-265506
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
31 July 2023
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
Hill Partnerships Limited
The Power House, Gunpowder Mill, Powdermill Lane, Essex
Waltham Abbey
EN9 1BN
Country
United Kingdom
NUTS code
- UKJ3 - Hampshire and Isle of Wight
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: £8,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court of England and Wales
London
Country
United Kingdom
six.4.2) Body responsible for mediation procedures
High Court of England and Wales
London
Country
United Kingdom
six.4.3) Review procedure
Precise information on deadline(s) for review procedures
The Contracting Authority will conduct itself in accordance with the Public Contracts Regulations 2015.
six.4.4) Service from which information about the review procedure may be obtained
Cabinet office
London
Country
United Kingdom