Deed of variation to an existing development agreement with a procured development partner in respect of the sale, purchase and development of land located at Vincent Road, Woolwich

Location

Royal Borough of Greenwich

Description

The Contracting Authority intends to make modifications to an existing Development Agreement ("DA") entered into between the Contracting Authority and Hill Residential Limited ("Hill") on 21 August 2021.

Total Quantity or Scope

The Contracting Authority intends to modify an existing DA entered into between the Contracting Authority and Hill on 21 August 2021. The DA will facilitate the development of Vincent Road, Woolwich, which was originally procured in accordance with the Public Contracts Regulations 2015, pursuant to the London Development Panel 2 Framework Agreement, in which the Contracting Authority undertook a mini-competition process.

Award Detail

CPV Codes

• 45000000 - Construction work

Indicators

Legal Justification

The Contracting Authority is publishing this voluntary ex ante notice to transparently notify economic operators of its intention to modify an existing DA entered into between the Contracting Authority and Hill on 21 August 2021. The Contacting Authority intends to enter into the modifications pursuant to Regulation 72(1)(b), (c) and (e) PCR, where additional works, services or goods are needed, some result in non-substantial modifications, and others are the result of unforeseen circumstances. Following the Grenfell Tower Inquiry, new legislation and rules came into force which amongst other things, required the redesign of large elements of the scheme to be delivered under the development agreement. The scheme was also impacted by macro-economic factors, such as unforeseen and almost unprecedented build cost inflation. The provision of grant funding available to support the scheme has required modifications. A description of the modifications: Minimum Requirements modified to: increase homes to be built on the site from 478 to 534; reduce commercial units from 1,000 sqm to 250 sqm; and remove obligation to retain the façade of the Bull Tavern pub. Modifications to the scheme design in terms of block footprint, massing, height and tenures for the purposes of planning requirements. Modifications to the land price, payment timings and overage terms and conditions. Modification so that the Contracting Authority no longer has an obligation to acquire 51 housing units, with those units now being taken by a Registered Provider ("RP"). New conditions precedent to secure a RP buyer of the affordable homes alongside the developer, to secure grant funding in respect of the scheme.