Award

Refurbishment and conditional Disposal of the Seven Sisters, seven social housing large blocks of flats (social housing accommodation), and associated contracts.

ROCHDALE BOROUGHWIDE HOUSING LIMITED

This public procurement record has 1 release in its history.

Award

09 Aug 2023 at 15:44

Summary of the contracting process

Rochdale Boroughwide Housing Limited (RBH) has recently completed a procurement process for the refurbishment and conditional disposal of the Seven Sisters social housing blocks of flats. The procurement involved appointing Legal and General Affordable Housing (LGAH) to project manage and carry out the refurbishment works. The procurement method used was a limited award procedure without prior publication of a call for competition. The location of the project is UKD3 (Greater Manchester) in the works industry category. The procurement stage has been awarded, with a contract value of £58,000,000 signed on 4th August 2023.

This tender presents a significant opportunity for businesses in the construction and refurbishment sector to participate in a major redevelopment project. Companies with expertise in refurbishment works, project management, and social housing development are well-suited to compete for the various contracts involved in the refurbishment of the Seven Sisters social housing blocks. The tender process, led by RBH, offers a chance for businesses to engage in a fully compliant regulated procurement process and contribute to the enhancement of social housing infrastructure in Greater Manchester.

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Notice Title

Refurbishment and conditional Disposal of the Seven Sisters, seven social housing large blocks of flats (social housing accommodation), and associated contracts.

Notice Description

RBH owns, manages and operates the Seven Sisters social housing blocks of flats. RBH intends to conditionally dispose of the Seven Sisters to Legal and General Affordable Housing (LGAH). Prior to the conditional disposal, LGAH will invest heavily in the redevelopment / refurbishment of the Seven Sisters, social housing blocks of flats. In order for LGAH to protect its investment in the Seven Sisters social housing blocks of flats, RBH will appoint LGAH to project manage the delivery of refurbishment works via a Client Leadership Management Services Contract (CLMS contract). Within this role LGAH will oversee and monitor the redevelopment/refurbishment of the Seven Sisters social housing flats. The appointment of the project manager of the redevelopment /refurbishment works and of the contractor to carry out the refurbishment will be made pursuant to a fully compliant regulated procurement process. The appointment of the refurbishment contractor to carry out the redevelopment /refurbishment works will be made pursuant to a fully compliant regulated procurement process. The plan is that LGAH will take ownership of the Seven Sisters social housing blocks of flats shortly after the completion of the refurbishment of each block (partial transfer until full transfer of all seven blocks). LGAH will appoint RBH to project manage and operate the refurbished flats.

Lot Information

Lot 1

This procurement is not subject to the Public Contracts Regulations 2015, because of Regulation 4. RBH, on 4th August 2023, has entered into a time limited (but extendable) exclusivity agreement (EA) with LGAH on the basis of which the parties have agreed a significant redevelopment / refurbishment project of the Seven Sisters (seven large block of social housing flats). The EA envisages the following five main arrangements (the proposed Arrangements): 1. RBH enters into a conditional sale/transfer agreement of the Seven Sisters to LGAH; 2. RBH appoints directly LGAH to project manage the delivery of the required refurbishment works in respect of the Seven Sisters flats via a Client Leadership Management Services (CLMS) contract. The CLMS Contract is a condition precedent of any funding to be provided by the LGAH; 3. LGAH will procure an Independent Project Monitor (IPM Contract), which is to be a joint appointment between the LGAH and RBH through a call-off from an appropriate and procurement rules compliant Framework Agreement (FA). The IPM contractor will provide the project management of the refurbishment works and will operate under a duty of care to all funders of the project; 4. RBH and LGAH will jointly procure and appoint a contractor to carry out the refurbishment works in respect of the Seven Sisters flats via a Pre-Construction Services Agreement (PCSA) and a JCT Design and Build contract (JCT D&B). The PCSA and the JCT D&B Contracts (together the Construction Contract) will be procured in accordance with the relevant public procurement rules; and 5. LGAH and RBH will enter into a Long-Term Management Agreement (LTMA) under which LGAH (as ultimate landlord of the Seven Sisters) will appoint RBH to manage the Seven Sisters flats on a long-term basis after the refurbishment works have been completed. RBH is of the view that the main purpose of the Arrangement is the conditional sale of the Seven Sisters. LGAH will make a significant upfront investment for the redevelopment / refurbishment of the Seven Sisters. The CLMS contract (awarded directly by RBH to LGAH), is considered critical by LGAH to protect its investment. It is for this reason that the CLMS contract is considered to be non-severable (according to Regulation 4 of the Public Contracts Regulations of 2015, as amended (PCR15)) and ancillary to the conditional sale. The other four arrangements are fully compliant with the relevant public procurement rules/ PCR15. LGAH is not a contracting authority for the purposes of the relevant public procurement rules as it is a Registered (for profit) Housing Provider. RBH decided ultimately to approach LGAH following a failed procurement process in 2019 and many unsuccessful attempts to generate some market interest for the Seven Sisters which had led RBH to a provisional decision to demolish four out of the Seven Sisters blocks. Additional information: This procurement is not subject to the Public Contracts Regulations 2015, because of Regulation 4.

Procurement Information

RBH, on 4th August 2023, has entered into a time limited (but extendable) exclusivity agreement (EA) with LGAH on the basis of which the parties have agreed a significant redevelopment / refurbishment project of the Seven Sisters (seven large blocks of social housing flats). The EA envisages the following five main arrangements (the proposed Arrangements): 1. RBH enters into a conditional sale/transfer agreement of the Seven Sisters to LGAH; 2. RBH appoints directly LGAH to project manage the delivery of the required refurbishment works in respect of the Seven Sisters flats via a Client Leadership Management Services (CLMS) contract. The CLMS Contract is a condition precedent of any funding to be provided by the LGAH; 3. LGAH will procure an Independent Project Monitor (IPM Contract), which is to be a joint appointment between the LGAH and RBH through a call-off from an appropriate and procurement rules compliant Framework Agreement (FA). The IPM contractor will provide the project management of the refurbishment works and will operate under a duty of care to all funders of the project; 4. RBH and LGAH will jointly procure and appoint a contractor to carry out the refurbishment works in respect of the Seven Sisters flats via a Pre-Construction Services Agreement (PCSA) and a JCT Design and Build contract (JCT D&B). The PCSA and the JCT D&B Contracts (together the Construction Contract) will be procured in accordance with the relevant public procurement rules; and 5. LGAH and RBH will enter into a Long-Term Management Agreement (LTMA) under which LGAH (as ultimate landlord of the Seven Sisters) will appoint RBH to manage the Seven Sisters flats on a long-term basis after the refurbishment works have been completed. RBH is of the view that the main purpose of the Arrangement is the conditional sale of the Seven Sisters. LGAH will make a significant upfront investment for the redevelopment / refurbishment of the Seven Sisters. The CLMS contract (awarded directly by RBH to LGAH), is considered critical by LGAH to protect its investment. It is for this reason that the CLMS contract is considered to be non-severable (according to Regulation 4 of the Public Contracts Regulations of 2015, as amended (PCR15)) and ancillary to the conditional sale. The other four arrangements are fully compliant with the relevant public procurement rules/ PCR15. LGAH is not a contracting authority for the purposes of the relevant public procurement rules as it is a Registered (for profit) Housing Provider. RBH decided ultimately to approach LGAH following a failed procurement process in 2019 and many unsuccessful attempts to generate some market interest for the Seven Sisters which had led RBH to a provisional decision to demolish four out of the Seven Sisters blocks. This procurement process falls outside the scope of application of the Public Contracts Regulations 2015, because of Regulation 4.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-03ee63
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/023281-2023
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

45453100 - Refurbishment work

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£58,000,000 £10M-£100M

Notice Dates

Publication Date
9 Aug 20232 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
3 Aug 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
ROCHDALE BOROUGHWIDE HOUSING LIMITED
Contact Name
Not specified
Contact Email
Not specified
Contact Phone
Not specified

Buyer Location

Locality
Not specified
Postcode
Not specified
Post Town
Not specified
Country
Not specified

Major Region (ITL 1)
Not specified
Basic Region (ITL 2)
Not specified
Small Region (ITL 3)
Not specified
Delivery Location
TLD North West (England)

Local Authority
Not specified
Electoral Ward
Not specified
Westminster Constituency
Not specified

Supplier Information

Number of Suppliers
1
Supplier Name

1. LEGAL & GENERAL AFFORDABLE HOMES LIMITED - CH NO: 11223470 2. LEGAL & GENERAL AFFORDABLE HOMES (AR) LLP - CH NO: OC435745 3. LEGAL & GENERAL AFFORDABLE HOMES (OPERATIONS) LIMITED - CH NO: 11444323

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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