Award

Retail Development

THE SHREWSBURY AND TELFORD HOSPITAL NHS TRUST

This public procurement record has 2 releases in its history.

Award

03 Jul 2023 at 14:53

Award

06 Apr 2023 at 11:17

Summary of the contracting process

The Shrewsbury and Telford Hospital NHS Trust has completed the procurement process for the "Retail Development" project in the construction work for commercial buildings category. The project involves entering into contractual arrangements with Noviniti Dev Co 1 Limited and Compass Contract Services for a new retail and administrative development at the Princess Royal Hospital in Telford. The procurement method chosen was a limited award procedure without prior publication of a call for competition. The Shrewsbury and Telford Hospital NHS Trust will be entering into Principal Agreements and Licences with Noviniti to facilitate the development. The project is currently in the award stage, with the contract being signed on 3rd July 2023.

This tender for the "Retail Development" project presents growth opportunities for businesses in the construction sector, particularly those experienced in commercial building works. Companies offering fit-out and alteration services would also find this opportunity suitable. The project location is in Telford, UK, with specific delivery addresses provided. Key dates and deadlines for completion are set within the contractual agreements, providing a clear timeline for interested businesses. The nature of the procurement, structured as a land transaction exempt from public contracts regulations, offers a unique business opportunity within a regulated framework.

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Notice Title

Retail Development

Notice Description

The Shrewsbury and Telford Hospital NHS Trust ("SATH") intends to enter into contractual arrangements with Noviniti Dev Co 1 Limited ("Noviniti") and Compass Contract Services (UK) Limited ("Compass") and Compass Group (UK and Ireland) Limited (as Guarantor) in respect of a new retail and administrative use development being constructed by SATH at the Princess Royal Hospital in Telford ("the Hospital") ("the Building") . The documents to be executed by SATH comprise a Principal Agreement for Underleases ("S2AFL") and a Licence for Alterations ("LTA") to be granted to Noviniti to permit Noviniti to undertake internal alterations and fit-out works pursuant to Noviniti's lease of the ground floor of the Building ("Noviniti Works"). The contractual arrangements are structured as a land transaction exempt from the Public Contracts Regulations 2015 ("PCR") and the Concession Contracts Regulations 2016 ("CCR").

Lot Information

Lot 1

SATH intends to enter into the S2AFL with Noviniti, Compass and the Guarantor and the LTA with Noviniti. Under the S2AFL and the LTA, Noviniti has the right to undertake the Noviniti Works at the Building. Following completion of the Noviniti Works, Noviniti will grant leases of the retail space to Compass and a lease of the communal space to SATH. SATH will be obliged to accept leases of the retail space directly from Noviniti if Compass defaults. SATH has structured the contractual arrangements as a land transaction exempt from the Public Contracts Regulations 2015 and the Concession Contracts Regulations 2016.

Procurement Information

The subject of this notice is the proposal by SATH to enter into the contractual arrangements contained in the S2AFL and the LTA. These arrangements follow-on from the Agreement for Lease dated 19 May 2023 entered into between SATH and Noviniti ("S1AFL") relating to the grant to Noviniti of a lease of the ground floor of the Building for a term of 33 years ("the Noviniti Lease"). Completion of that lease will take place following completion by SATH of the relevant parts of the building works being undertaken by SATH in the construction of the Building. The S1AFL was the subject of a VEAT Notice published by SATH on 6 April 2023.<br/><br/>Under the terms of the S2AFL Noviniti is not obliged to undertake the Noviniti Works but if it fails to do so, SATH may terminate the Noviniti Lease. the Noviniti Lease contains a break right in favour of SATH in the event that Noviniti does not commence the Noviniti Works by an agreed deadline. It has a similar break right where Noviniti fails to complete the Noviniti Works by an agreed deadline. <br/>Where Noviniti completes the Noviniti Works then under the S2AFL it may call for Compass and the Guarantor to accept leases of the retail areas within the Building for a term of 15 years and for SATH to accept reversionary leases of those areas for a further term of 15 years. (There is also a provision for SATH to accept a lease of the communal areas of the Building at a peppercorn rent and to accept a sublease from Compass of one of the retail units at a peppercorn rent.) <br/>SATH considers that the arrangements fall within the land exemption under Regulation 10(1)(a) PCR and/or regulation 10(11)(a) CCR.<br/><br/>Noviniti is under no obligation to serve notice to elect to carry out the Noviniti Works. No public works contract arises due to the lack of an enforceable obligation. <br/><br/>Following completion of the Noviniti Lease Noviniti has the exclusive right to undertake the Noviniti Works for as long as the Noviniti Lease remains in operation and until such time as any of SATH break rights under the Noviniti Lease become capable of exercise.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-03bd40
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/018873-2023
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Works
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


CPV Codes

45213100 - Construction work for commercial buildings

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
3 Jul 20232 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
2 Apr 20232 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
THE SHREWSBURY AND TELFORD HOSPITAL NHS TRUST
Contact Name
Will Nabih
Contact Email
w.nabih@nhs.net
Contact Phone
+44 1743261456

Buyer Location

Locality
SHREWSBURY
Postcode
SY3 8XQ
Post Town
Shrewsbury
Country
England

Major Region (ITL 1)
TLG West Midlands (England)
Basic Region (ITL 2)
TLG2 Shropshire and Staffordshire
Small Region (ITL 3)
TLG22 Shropshire
Delivery Location
TLG21 Telford and Wrekin

Local Authority
Shropshire
Electoral Ward
Bowbrook
Westminster Constituency
Shrewsbury

Supplier Information

Number of Suppliers
1
Supplier Name

NOVINITI DEV CO 1

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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