Award

Funding and development agreement South Coalville Primary School

LEICESTERSHIRE COUNTY COUNCIL

This public procurement record has 1 release in its history.

Award

12 Jul 2023 at 09:36

Summary of the contracting process

The Leicestershire County Council is seeking a funding and development agreement for the construction of South Coalville Primary School in the UK. The procurement stage is completed, and the method used is a limited award procedure without prior publication. The contract was awarded to Harworth Estates (Agricultural Land) on June 26, 2023. The primary objective of the contract is to provide supplemental funding for the school development, which is part of a wider housing scheme, and ensure compliance with planning obligations.

This tender presents growth opportunities for businesses specializing in primary school construction works. Companies experienced in delivering large-scale housing developments and educational infrastructure projects would be well-suited to compete. The Leicestershire County Council's emphasis on regulatory compliance and adherence to planning agreements signifies a need for reliable suppliers with a track record in the construction sector. The contract aims to facilitate the delivery of critical educational facilities while supporting broader urban development initiatives in the region.

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Notice Title

Funding and development agreement South Coalville Primary School

Notice Description

Leicestershire County Council ("LCC") is entering into a supplementary funding and development agreement ("DFA") to support the new build delivery of South Coalville primary school ("School") to fulfill s.106 obligations. The School site is owned by the developer, Harworth Estates. The site is subject to planning obligations imposed by North West Leicestershire District Council in its capacity as local planning authority and LCC in its capacity as local highway authority and local education authority in the s.106 agreement of 26 September 2016 (as varied). Under the s.106 agreement the developer is required to build a two-form entry primary school. The freehold to the site of the School will be transferred by the developer to LCC for nominal consideration at or around the time the DFA is entered into. Under a Deed of Variation to the s.106 agreement made on 21 March 2023 the developer is not obliged to build the School if the development cost is above PS9m but is instead obliged to pay a contribution cost and transfer the site to LCC. Continues II.2.4 below.

Lot Information

Lot 1

Continues from II.1.4 above. The developer must consult with LCC if the development cost is in excess of PS9m on possible alternatives and has absolute discretion as to whether to agree alternative routes to deliver the School. The LCC intends to enter into the DFA with the developer which will provide up to PS3m support funding if the School development cost exceeds PS9m in order to facilitate its delivery. The DFA will also address specification requirements, certification and step-in rights to protect LCC's interests relating to making the funding contribution available. The developer is delivering a wider housing development scheme of up to 2,700 dwellings in the area as consented for in the relevant outline planning permission and the School forms part of the planning requirements under the s.106 agreement. Additional information: The date in V.2.1 below relates to the approval by LCC to proceed with the DFA.

Procurement Information

The primary obligation for the developer to deliver the School derives from obligations under the s.106 agreement. S.106 agreements are recognised as being a different kind of agreements from public works contracts under the Public Contracts Regulations 2015 (as amended) ("PCR"). Its purpose is to regulate the development of land so its essential object is to ensure the proper planning in the local planning authority's area rather than the delivery of the specified works. Consequently, such agreements are not governed under the PCR as per the principle in Faraday Development Ltd v West Berkshire Council [2018] EWCA Civ 2532. There is no positive obligation for the developer to deliver the School with costs in excess of PS9m under the terms of the s.106 variation. If the developer elects to deliver the School with costs in excess of PS9m and wishes to access LCC's funding, then the DFA contains an enforceable obligation to deliver works specified by LCC in order to define and regulate the expenditure of LCC's contribution towards discharging the s.106 obligations. LCC considers that the DFA is incidental and ancillary to the performance of the pre-existing s.106 agreement and is not intended to form a separate project to deliver a work in its own right. The DFA will provide for LCC to have: the benefit of step-in rights through the Collateral Warranties to enable LCC to step-in and instruct the completion of the build should the developer default; a Performance Bond from the building contractor; and payment of liquidated damages for late delivery to reflect LCC's anticipated cost of procuring temporary alternative school accommodation. LCC does have an economic benefit in the School being transferred to it on completion. However LCC does not consider that the DFA forms a public works contract for the purposes of the PCR given its primary purpose is to provide supplemental funding and any perceived works obligations are incidental and ancillary to the performance of the s.106 agreement which is exempt from the PCR.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-03e0fc
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/019903-2023
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

45214210 - Primary school construction work

Notice Value(s)

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

Notice Dates

Publication Date
12 Jul 20232 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
25 Jun 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
LEICESTERSHIRE COUNTY COUNCIL
Contact Name
Mr Simon Ip
Contact Email
commissioning.support@leics.gov.uk
Contact Phone
+44 1163055390

Buyer Location

Locality
LEICESTER
Postcode
LE3 8RA
Post Town
Leicester
Country
England

Major Region (ITL 1)
TLF East Midlands (England)
Basic Region (ITL 2)
TLF2 Leicestershire, Rutland and Northamptonshire
Small Region (ITL 3)
TLF22 Leicestershire CC and Rutland
Delivery Location
TLF22 Leicestershire CC and Rutland

Local Authority
Blaby
Electoral Ward
Glenfield Faire
Westminster Constituency
Mid Leicestershire

Supplier Information

Number of Suppliers
1
Supplier Name

HARWORTH ESTATES (AGRICULTURAL LAND

Open Contracting Data Standard (OCDS)

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