Land & Package Deal at Dark Lane, Calow

Location

Dark Lane, Calow, Chesterfield, North East Derbyshire, S44 5AD

Description

Traditional land and build "package deal" for the construction of 35 affordable homes.

Total Quantity or Scope

Guinness Developments Limited ("GDL") has entered into an agreement for the purchase of land and an associated build contract with SME housing developer Stancliffe Homes Ltd. ('Stancliffe'). This is a traditional land and build "package deal" brought to GDL by land agent Halo (Housing Assets Land and Organisation) Limited. The scheme will result in the construction of 35 affordable homes on land off Dark Lane, Calow, S44 5AD. It comprises 16 rented and 19 shared ownership properties. Stancliffe have arranged to purchase the site from a private vendor and have completed initial design work up to RIBA stage 3. The package deal is comprised of GDL entering into a JCT Design & Build contract for the construction of the new homes on the land with Stancliffe (which is the subject of this notice), and a simultaneous purchase of the land from Stancliffe by The Guinness Partnership Ltd., GDL's parent company (an exempt transaction under the Public Contract Regulations 2015). The contracting authority for the purposes of the Procurement Regulations will be GDL. GDL is a subsidiary of The Guinness Partnership Ltd. (TGPL) but is a contracting authority in its own right. Ownership of the properties will be transferred from GDL to TGPL upon practical completion. The transaction for the purchase of land will be directly between Stancliffe and TGPL.

Award Detail

Award Criteria

CPV Codes

• 45210000 - Building construction work

Indicators

• Award on basis of price.

Legal Justification

Guinness Developments Limited ("GDL") considers that in this case the use of the negotiated procedure without prior publication is justified on the basis of: Regulation 32(b)(ii) of the Public Contract Regulations 2015 - single supplier - technical reasons The direct award without prior publication justification applies because: (a) the contractor was only prepared to sell the land only as part of arrangements that also include its development. (b) GDL and the North East Derbyshire District Council have significant unmet need in the locality of the development, evidenced through long housing waiting lists. (c) There is no other land on the market which is available for social housing development within reasonable timeframes local to the unmet need for development. A VEAT noticed was published well in advance of the contract being concluded.

Other Information

Note:- Scoping and initial negotiations on this package deal commenced in January 2024 and were substantially underway prior to the implementation of the Procurement Act 2023. Guinness' view is therefore that this award is covered by the transition provisions built into PA23, and therefore that this contract award is subject to PCR2015, which is why a VEAT notice is being issued.