Section one: Contracting authority
one.1) Name and addresses
London Legacy Development Corporation
5 Endeavour Square, Westfield Avenue
London
E20 1JN
Contact
Brian Walsh
procurement@londonlegacy.co.uk
Telephone
+44 2032881800
Country
United Kingdom
Region code
UKI - London
Internet address(es)
Main address
www.queenelizabetholympicpark.co.uk
one.4) Type of the contracting authority
Body governed by public law
one.5) Main activity
Other activity
Development and regeneration
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
East Wick and Sweetwater – Modifications to Development Agreement
two.1.2) Main CPV code
- 45000000 - Construction work
two.1.3) Type of contract
Works
two.1.4) Short description
Modifications to a Development Agreement for the development of the site known as East Wick and Sweetwater in the Queen Elizabeth Olympic Park.
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: £800,000,000
two.2) Description
two.2.2) Additional CPV code(s)
- 45211000 - Construction work for multi-dwelling buildings and individual houses
two.2.3) Place of performance
NUTS codes
- UKI - London
Main site or place of performance
LONDON
two.2.4) Description of the procurement
London Legacy Development Corporation (LLDC) entered into a Development Agreement (DA) with East Wick and Sweetwater Projects (Holdings) Limited on 27 February 2015 for the development of the site known as East Wick and Sweetwater in the Queen Elizabeth Olympic Park, Stratford, London. The DA was varied by a supplemental agreement and deed of variation dated 14 July 2016, a deed of variation dated 26 July 2016, a deed of variation dated 15 December 2017 and a deed of variation dated 21 December 2018. The parties have entered into a further deed of variation and ancillary documents to amend the DA to incorporate various modifications including the following: (i) Reduction in share of returns payable to LLDC; (ii) A private unit by private unit overage provision for further payments to LLDC above the fixed returns for sales of private units; (iii) Simplifications to the arrangements governing LLDC’s share of Private Rental Sector revenues whereby 16% of the Private Rental Sector units in Phases 2-7 are owned outright by LLDC; (iv) Modifications to termination payments to cover costs incurred; (v) Introduction of tighter development milestones requiring specified delivery by the Contractor in respect of each of the phases; (vi) “Golden Brick” arrangements in respect of blocks containing 100% affordable housing units or 100% private rented units; and (vii) the removal of Phase 6 from the DA.
LLDC considers that the modifications have been brought about by circumstances which a diligent contracting authority could not have foreseen, they do not change the overall nature of the contract and the price has not increased by more than 50% of the value of the original contract. The modifications have been brought about as a result, inter alia, of adverse market conditions which have been caused in part and exacerbated by the COVID-19 pandemic. LLDC therefore considers that Regulation 72(1)(c) of the Public Contracts Regulations 2015 applies.
Furthermore, LLDC considers that the modifications are not “substantial” for the purposes of Regulations 72(1)(e) and (8). The modifications do not render the contract materially different in character from either the original DA or the immediately preceding version. Whilst some of the modifications when considered alone are in the Contractor’s favour, LLDC has sought to counterbalance this with modifications in its own favour, so that the effect on the overall economic balance is neutral. LLDC therefore considers that Regulation 72(1)(e) also applies. As a result, LLDC considers that the modifications may be made without a new procurement procedure.
two.2.5) Award criteria
Cost criterion - Name: N/A / Weighting: 0
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:
See explanation at Section II.2.4.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
Section five. Award of contract
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
7 October 2022
five.2.2) Information about tenders
Number of tenders received: 1
Number of tenders received from SMEs: 0
Number of tenders received from tenderers from other EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 0
Number of tenders received by electronic means: 0
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
Eastwick and Sweetwater Projects (Holdings) Limited
350 Euston Road,, Regents Place,
London,
NW1 3AX
Country
United Kingdom
NUTS code
- UKI - London
National registration number
09459001
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £800,000,000
Section six. Complementary information
six.3) Additional information
To view this notice, please click here:
https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=719849409
GO Reference: GO-20221010-PRO-21110013
six.4) Procedures for review
six.4.1) Review body
London Legacy Development Corporation
5 Endeavour Square, Westfield Avenue
London
E20 1JN
Country
United Kingdom