Scope
Reference
CAS-01049-Y8Q1C9
Description
Aster had commenced the delivery of 39 affordable homes at Clay Park, Dartington, through a contract with Acheson Construction, appointed via a PCR2015-compliant framework (Westworks). Enabling works had started on site, and the scheme was progressing in line with planning and funding milestones.
On 14 February 2025, Acheson issued a notice of intention to appoint administrators, forcing Aster to terminate the contract. This created an urgent need to secure a new contractor to avoid losing sub-contractor packages, escalating costs, and, critically, to meet a 3 June 2025 planning deadline to retain permission.
Aster proposes a direct award to Clayewater Homes Ltd under the Procurement Act 2023, using the "advantageous terms due to insolvency" justification. Clayewater can mobilise immediately, retain existing subcontractors, and deliver the scheme at a fixed price below inflation-adjusted costs. A transparency notice will be published, and a Development Agreement entered into after the mandatory standstill period.
Contract 1. Totnes Transition Homes CLT
Supplier
Contract value
- £10,700,000 excluding VAT
- £10,700,001 including VAT
Above the relevant threshold
Earliest date the contract will be signed
21 June 2025
Contract dates (estimated)
- 23 June 2025 to 14 November 2025
- 4 months, 22 days
Main procurement category
Works
CPV classifications
- 45211000 - Construction work for multi-dwelling buildings and individual houses
Other information
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Direct award justification
Advantageous terms on insolvency
Following the insolvency of Acheson Construction, which was originally appointed via a PCR2015 framework, Aster is under significant time pressure to commence works before a planning permission deadline of 3 June 2025. A new contract is proposed with Clayewater Homes Ltd, who offer a fixed price that is £67,331 below the adjusted value of the Acheson contract (including inflation), and who can deliver without delay due to existing capacity and established working relationships. The direct award ensures advantageous terms and protects against cost escalation, loss of subcontractor packages, and planning expiry.
Supplier
Clayewater Homes
- Companies House: 06719634
Brannam Crescent, Roundswell Business Park
Barnstaple
EX 31 3TD
United Kingdom
Telephone: 01271445950
Email: paulmadge@clayewaterpg.co.uk
Region: UKK43 - Devon CC
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Contract 1. Totnes Transition Homes CLT
Contracting authority
ASTER GROUP LIMITED
- Companies House: IP29573R
Sarson Court
Devizes
SN10 2AZ
United Kingdom
Region: UKK15 - Wiltshire CC
Organisation type: Public authority - sub-central government