Construction work

Tender description

The Council has identified the opportunity to make better use of its existing estate at Grange Farm in South Harrow by increasing density and tenure diversity. The buildings on the estate are reaching the end of their life and a decision has been taken to redevelop the entire estate to enable this optimisation to occur. Further demographic and socio-economic information can be found on the Council's dedicated information website: https://harrowinformed.harrow.gov.uk/ The development of the Grange Farm estate is now the leading investment project within the Housing Department and entails the replacement of 282 dwellings predominantly Resiform flats with approximately 568 new homes including flats and houses with a greater mix of dwelling sizes and a tenure split close to 60:40 sale and social rent (to be retained by the council). The Council's vision for Grange Farm is to create an exemplary mixed-tenure housing estate that sets a new standard for mid density suburban development in London. The council is seeking a partner to build the whole estate of approximately 568 units, including demolition of existing properties, creation of new road, services and drainage infrastructure. Together with Energy Centre to serve the whole estate and Community Centre. The council will be submitting a Planning application by March 2016 and will be acquiring as many of the 29 leasehold and freehold interests as possible by July 2016. The council plans to make a CPO and while it is hoped not to have to invoke this order should it be necessary the development partner would be expected to meet this additional cost. To put this into context, the potential for CPO is envisaged to be limited to the remaining leaseholders and freeholders of bungalows. This should therefore be less than 20 dwellings. The council is well advanced with negotiations and agreement in principle with Genesis Housing Association for both its blocks, and the Church of England for the small community centre. Negotiations are also progressing positively with the MOD for the land access via Northolt road. The developer may also be required to provide [delivery (mechanism and process) Phasing, potential to include other development sites, distribution of sales units, variations to Planning consent, funding arrangements and timing]. Description and Scope of the Project: Vision The Council's vision for Grange Farm is to create an exemplary mixed-tenure housing estate which sets a new standard for mid-density suburban development in London. As a site, Grange Farm has many strengths, including as some examples: 1. Access to public transport and Central London is good. The site achieves a PTAL rating of 3 (this varies across the site peaking at 5 close to Northolt Road), which perhaps understates its convenience for bus travel and underground stations at South Harrow and Harrow on the Hill. 2. The site enjoys relatively good access from the road network, with established and appropriately sized access points. 3. The site is relatively flat and, whilst occupying a position well above flood levels, does not require negotiation of steep hills to access it. 4. The site is located in an established residential area, but with excellent access to high street and bulk retail. This includes Waitrose and the design plans to incorporate direct pedestrian access to this retail unit. 5. There is significant green space, and mature trees, within the estate boundaries. 6. The estate is close to the prestigious Harrow on the Hill postcode area, with several well-regarded schools. Socially too, the estate is privileged to have settled and positive-minded residents. Equally, the Ward Councillors are fully supportive of regeneration. Grange Farm's weaknesses are limited to the physical nature of the existing development. The Council's vision for the estate is to eliminate these weaknesses and take full advantage of the development potential of the site. Large-scale housing developments in London, and other major British cities, are understandably characterised as high-density schemes with sales values driven by tall towers which command long views and high prices. Outside of urban areas, housing is usually delivered in less costly low-rise houses which are based around the ideals of space and amenity. Mid-density housing in London generally follows neither of these archetypes. Most examples are in suburban areas and occupy a middle ground between the relatively low cost of house-led schemes, and the higher density of flatted developments. Few of these have been particularly successful, with many appearing cheap, nondescript or otherwise unappealing. Conversely, in towns and cities such as Cambridge, Bath and Harlow, high-quality developments of 3 to 6 storeys have driven regeneration, received international acclaim, and created some of Britain's most desirable new addresses. The Council's vision is to make the most of the opportunities presented by the site to achieve a high-quality sustainable community. The ultimate goal is to provide new and improved homes for all current residents who wish to return. As well as this, there is strong evidence to suggest that high-quality homes in this area can achieve prices 30 % above the average. By capturing this value (which the Council will seek to do), the Council will be better able to meet the needs of the current residents and improve quality of life for all. An ambitious council The Council has backed up its stated ambition for the Borough by: — Restructuring the Council to streamline its Regeneration initiatives; — Commencing a programme of private rented sector developments within the General Fund; — Establishing a wholly-owned independent Lettings Agency (this falls outside the scope of this procurement), both to manage the Council's private assets in the residential market, and also to actively compete on the high street, in particular by setting new standards in service and efficiency. Project Plan The Project Plan has set an ambitious timetable to submit a planning application by March 2016 and expects to see the first of 2 phases of demolition and building commence in autumn 2016. The Council's Preparation for a Successful Delivery Surveys The following surveys have been undertaken and are available for inspection on the Due North portal: Sub surface (MK Surveys), Rights of Light (Calford Seaden), Ecology (Indigo surveys), Tree (Indigo surveys), Topographical Survey (Alan Rhodes associates). In addition traffic surveys and ground investigation surveys are currently being undertaken, the results of which will be made available when completed. Site Assembly The council has reached agreement in principle with Genesis Housing Association to acquire 2 blocks each of 10 properties at Osmond Close and Wesley Close within its ownership. Similarly the council is purchasing 2 bungalows owned by A2Domonion at Osmond Close. The small community centre at Osmond Close is being acquired from the London diocese and negotiations are well advanced. The improvement of the site entrance for pedestrians from Northolt Road is seen as a key benefit to flow from the scheme and negotiations are well advanced for the council to acquire the site owned by the MOD and occupied by 2 huts used by Air Cadets. This is to be achieved by offering the Air Cadets use of a floor within the new Community Centre on the estate. A pedestrian access to the adjacent retail park car park is proposed and negotiations with Waitrose are under-way to secure agreement of this. The council proposes that the scheme be delivered in 2 phases commencing with the demolition of 13 Resiform blocks within Grange Farm close and Osmond close. Of the leasehold and freehold interests in units across the site only 8 are occupied by the owners, the remaining 21 units have been let privately. 2 of these have now been purchased and Heads of Terms agreed with 4 others. Within the proposed phase 1 of the scheme there remain only 11 leasehold interests. Decants The council has commenced a programme of permanent decants with the objective of securing a minimum 117 empty units, by august 2016 which would equate to 13 Resiform blocks (Grange Farm close and Osmond Close). Currently 42 residents have accepted permanent decants from across the site and these units are occupied on a short term basis by non secure temporary tenants. Potential for Further Development Opportunities In developing the new Community centre for Grange Farm the council sees the potential to close a community centre on the opposite side of Northolt Road. This together with an adjacent 3 storey block could be free for development on completion of the final phase of the Grange Farm regeneration. This is wholly dependent upon the new Community Centre being operational and the ability of the council to decant up to 10 residents into the new Grange Farm rented units. Through this tender process the council is open to suggestions about the potential use of this additional site which an initial high level appraisal has suggested may allow for 40 additional units. The council has undertaken preparatory works of design and site assembly as described in this notice and the Pre Qualification Questionnaire and Supporting Information document and will be submitting a planning application at the time of issuing the ITT. The council is also preparing for demolition by undertaking decanting from the site. The council is inputting the land value of the site and requires potential bidders to make an assessment of total build costs and of potential sales values. Should either build costs exceed forecasts or sales income fail, the risks will fall to the bidders. The procurement is being conducted in accordance with the Competitive Procedure with Negotiation in accordance with Regulation 29 of the Public Contracts Regulations 2015. On the basis that the needs of the Authority cannot be met without adaptation of readily-available solutions the Authority is conducting the procurement using the Competitive Procedure with Negotiation under Regulation 29 of The Public Contracts Regulations 2015. In particular the Council may wish to negotiation with tenders re issues around delivery (mechanism and process) Phasing, potential to include other development sites, distribution of sales units, variations to Planning consent, funding arrangements and timing. In brief this will mean that your initial tender will provide the basis for subsequent negotiations and we can negotiate with tenderers the initial and all subsequent tenders submitted, except for the final tender, to improve the tender submission content. However Harrow Council expressly reserves the right to award contracts on the basis of the initial tenders without negotiation.