Award

Meadows Phase 2B/ 2C Student Accommodation Project

UNIVERSITY OF ESSEX

This public procurement record has 2 releases in its history.

Award

18 Aug 2021 at 14:20

Award

24 May 2021 at 11:12

Summary of the contracting process

The University of Essex is seeking suppliers for the "Meadows Phase 2B/2C Student Accommodation Project" located at its Colchester campus. This procurement process is currently at the Award stage, having reached completion on 17 August 2021. The project is classified under the CPV code 79993000, aligned with building and facilities management services. The contract, with an estimated value between £95 million and £105 million, focuses on the design, construction, financing, and ongoing maintenance of new student residential units aimed at accommodating an increased student population. The successful contractor, ULiving Consortium (operating through ULiving@Essex3 LLP), has been awarded the contract as of the recent updates.

This tender presents a significant opportunity for businesses in the construction and facilities management sectors, particularly those specialising in the design and maintenance of student accommodation. Companies that excel in large-scale building projects, have expertise in the higher education sector, and can demonstrate capability in financing such undertakings would be well-suited to engage with this project. As the contract has a long operational period of approximately 50 years, businesses may also find ongoing partnership opportunities in property management and related services with the ULiving Consortium.

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Notice Title

Meadows Phase 2B/ 2C Student Accommodation Project

Notice Description

A contract for the design, build, finance and maintenance of the Meadows Phase 2B/2C Student Accommodation Project at the University of Essex's Colchester campus.

Lot Information

Lot 1

Building and facilities management services. Construction work for university buildings. Construction work. Building construction work. Construction-related services. Multidwelling buildings construction work. Multi-functional buildings construction work. Repair and maintenance services of building installations. Miscellaneous repair and maintenance services. Accommodation and office services. In 2012, the University sought partners to establish a long term partnership to facilitate the design, build, finance and maintenance of 648 new bedrooms of student accommodation within the University of Essex Knowledge Gateway site ready for the start of the 2013/2014 academic year, together with the potential leasehold sale of an established residential development comprising 767 bedrooms (the "Phase 1" project). ULiving Consortium were identified as the successful tenderer, and subsequently entered into the contract (via a special purpose vehicle called ULiving@Essex Limited) to provide the required services with the University. In line with market norms, the Phase 1 project documentation contained a Restrictive Covenant which restricted the University's ability to provide additional student accommodation unless certain student to bed ratio and occupancy track record tests were met. Contracts relating to a second phase of residences ("Phase 2A") were entered into with the ULiving Consortium (via a special purpose vehicle called ULiving@Essex2 Limited) pursuant to a Voluntary ex Ante Transparency Notice (published 23 May 2015), delivering 643 bedrooms (on a design, build, finance and maintenance basis) adjacent to Phase 1. The VEAT Notice was used as the contractual Restrictive Covenant tests on Phase 1 had not been satisfied. Again, in line with market norms, the Phase 2A project documentation contained a Restrictive Covenant which restricted the University's ability to provide additional student accommodation unless certain student to bed ratio and occupancy track record tests were met. The tests for Phase 1 and Phase 2A are set out in VI.3. Phase 2B/2C is the third phase of the residences development and the University wishes to contract for the provision of a further 1,262 units of student residential accommodation on a design, build, finance and operate basis. The ULiving Consortium will (through the use of a special purpose vehicle called ULiving@Essex3 LLP) operate the residences for c 50 years following completion of construction. The sites are located at the University's Colchester Campus. Planning documentation providing further detail can be found here - https://www.colchester.gov.uk/planning-app-details/?id=e2fc087d-84bee911- a976-000d3ab42b3b#ValidationSummaryEntityFormView. The Restrictive Covenant tests under the Phase 1 and Phase 2A documentation have not been satisfied at the time of publication of this notice, meaning that the ULiving Consortium has exclusive rights to deliver Phases 2B and 2C at present and for at least the next 3 years (September 2024 being the earliest point at which the tests can now be met) as the ULiving Consortium (via ULiving@Essex Limited and ULiving@Essex2 Limited) will only consent to the development taking place if the ULiving Consortium (via ULiving@Essex3 LLP) also delivers Phases 2B and 2C. Additional information: The construction value of this project was estimated at the point of issue of the VEAT as between 95 000 000 and 105 000 000 GBP. ULiving@Essex3 LLP will also generate revenue through the operation of the accommodation, by way of retaining the majority of the rental income on rooms reserved by the University or otherwise let over the c 50 year operational period

Procurement Information

The Contractor is the only economic operator which can deliver the development due to the existence of exclusive rights owned by it in connection with the services required (pursuant to Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015). Those rights exist pursuant to restrictive covenants under existing agreements entered into by the University, and thus the Contractor has an exclusive right in connection with the services required pursuant to Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015. In 2012, the University sought partners to design, build, finance and maintain 648 new student bedrooms, together with the potential leasehold sale of an established development comprising 767 bedrooms ("Phase 1"). ULiving Consortium were identified as the successful tenderer, and subsequently entered into contract (via a special purpose vehicle called ULiving@Essex Limited) with the University to deliver Phase 1. In line with market norms, the Phase 1 documentation contained a Restrictive Covenant which restricted the University's ability to provide additional student accommodation unless certain tests were met. Contracts relating to the development of additional student residences ("Phase 2A") were entered into with the ULiving Consortium (via ULiving@Essex2 Limited) pursuant to a Voluntary ex Ante Transparency Notice (published 23 May 2015), delivering 643 bedrooms (on a design, build, finance and maintenance basis) adjacent to Phase 1. The VEAT Notice was used as the Restrictive Covenant tests on Phase 1 were not satisfied. In line with market norms, the Phase 2A documentation contained a Restrictive Covenant which restricted the University's ability to provide additional student accommodation unless certain tests were met. The University wishes to contract for the provision of a further 1,262 units of student residential accommodation on a design, build, finance and operate basis. The Restrictive Covenants on Phases 1 and 2A prevent the University from carrying out the development without the consent of companies related to the Contractor unless certain tests are satisfied. The tests are: (a) for each of the previous three (3) consecutive Contract Years the ratio of Total Student Demand to Total Bed Supply has not fallen below 1.5:1.00; (b) the number of proposed further rooms is such that when occupied the ratio of Total Student Demand to Total Bed Supply will not fall below 1.5:1.00 for the following three (3) Contract Years assessed on the basis of the University's projected student number returns to HEFCE (now HESA); (c) for each of the previous three (3) consecutive Contract Years at least ninety eight per cent (98%) of the Rooms within the Accommodation have been occupied for the whole of the relevant Letting Period. Test (a) was not met for the Contract Years 2017/18 and 2018/19 and test (c) has not been satisfied. This is the case for both Phases 1 and 2A. The companies related to the Contractor (such related companies being ULiving@EssexLimited and ULiving@Essex2 Limited) will only consent to the development taking place if it is carried out by the Contractor (via ULiving@Essex3 LLP). The Contractor therefore has exclusive rights to carry out the development.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-02b43f
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/020228-2021
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work

50 - Repair and maintenance services

71 - Architectural, construction, engineering and inspection services

79 - Business services: law, marketing, consulting, recruitment, printing and security

98 - Other community, social and personal services


CPV Codes

45210000 - Building construction work

50700000 - Repair and maintenance services of building installations

50800000 - Miscellaneous repair and maintenance services

71500000 - Construction-related services

79993000 - Building and facilities management services

98340000 - Accommodation and office services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£98,000,000 £10M-£100M

Notice Dates

Publication Date
18 Aug 20214 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
1 Mar 20214 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
UNIVERSITY OF ESSEX
Contact Name
Not specified
Contact Email
procure@essex.ac.uk
Contact Phone
Not specified

Buyer Location

Locality
COLCHESTER
Postcode
CO4 3SQ
Post Town
Colchester
Country
England

Major Region (ITL 1)
TLH East (England)
Basic Region (ITL 2)
TLH3 Essex
Small Region (ITL 3)
TLH34 Essex Haven Gateway
Delivery Location
TLH3 Essex

Local Authority
Colchester
Electoral Ward
Wivenhoe
Westminster Constituency
Harwich and North Essex

Supplier Information

Number of Suppliers
1
Supplier Name

ULIVING CONSORTIUM (ACTING VIA ULIVING@ESSEX3

Open Contracting Data Standard (OCDS)

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                "measure": "highestValidBidValue",
                "value": 105000000,
                "currency": "GBP"
            },
            {
                "id": "5",
                "measure": "bids",
                "relatedLot": "1",
                "value": 1
            }
        ]
    },
    "links": [
        {
            "rel": "prev",
            "href": "https://ted.europa.eu/udl?uri=TED:NOTICE:180882-2015:TEXT:EN:HTML"
        }
    ],
    "language": "en"
}