Construction Package Deal at Station Road, Oakley, MK47 7RB

Location

Station Road, Oakley, MK47 7RB

Description

Traditional land and build "package deal" for the construction of 40 affordable homes on land off Station Road, Oakley, Bedford.

Total Quantity or Scope

Following the issue of a VEAT notice, Guinness Developments Limited ("GDL") has entered into an agreement for the purchase of land and an associated build contract. This is a traditional land and build "package deal" brought to GDL by land agent MTP Developments Limited, for the construction of new homes by Snowdon Homes Ltd. The scheme will result in the construction of 40 affordable homes on land off Station Road, Oakley, Bedford. It will comprise circa 19 rented and 21 shared ownership properties. MTP Developments purchased the site from a private vendor and the site benefitted from outline planning permission. The package deal was comprised of GDL simultaneously purchasing the land from MTP Developments (an exempt transaction under the Public Contract Regulations 2015), and entering into a JCT Design & Build contract with Snowdon Homes Ltd (which is the subject of this notice) for the services required to obtain full planning permission and then to carry out the construction of new homes on the land. The award of contract to Snowdon was a condition of the deal, and was required by MTP Developments in order for it to proceed. The contracting authority for the purposes of the Procurement Regulations is 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. Interested parties should note that the transaction for the purchase of land has been directly between MTP Developments and GDL. As this is an exempt transaction under PCR2015, no additional details have been provided in respect of the land transaction. The sum of £8,942,493 (ex VAT) represents the expected total value of the construction contract with Snowdon Homes. The total expected package cost including the land purchase (£3.6M), is £12,542,493, exclusive of any VAT payable. Note:- Scoping and initial negotiations on this package deal commenced in October 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 rather than PA23.

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 was 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 Supplier was prepared to sell the land only as part of arrangements that also include the construction of the new homes by Snowdon Homes Ltd. (b) GDL and the Bedford Borough Council have significant unmet need in the locality of the development, evidenced through long housing waiting lists. (c) There was no other land on the market which is available for social housing development within reasonable timeframes local to the unmet need for development.