Construction work

Tender description

The University is a lead partner in the Newcastle Science City initiative which promotes Newcastle as a city of science across the world. The 24-acre site will become an exemplar in sustainable urban development, attracting leading edge science and technology organisations to a mixed new community which will encompass a variety of educational, business, residential and leisure uses. Enabling, infrastructure and public realm works were completed in 2014 to make the site development ready and the 1st buildings, The Core and The Key, are now open. Construction works for the Urban Sciences Building has begun and is expected to open at the beginning of the academic year in September 2017. The next building to follow the Urban Sciences Building is the Learning and Teaching Centre (LTC) (formerly known as the Conference and Learning Centre). The LTC (and adjacent infrastructure works for the Science Central LLP) is proposed to be located at Science Central which is developed by a civic partnership between Newcastle City Council and Newcastle University. The proposed location is part of the strategic decision to co-locate all of the Business School's undergraduate teaching (excluding service teaching to non-Business School students) at Science Central. This will sit alongside and have physical connections into the new Urban Sciences Building scheduled to open in September 2017. This tender was for the recruitment of a main contractor for this scheme, with the contractor being appointed on a 2-stage basis. A Pre-Construction Services Agreement will be entered into to cover the 2nd stage period where the main contractor will be required to work with the Client and Design Team to finalise the design and procure the work packages, with the works being carried out and completed under NEC3 Option A (April 2013 Edition). The University has appointed the main contractor on behalf of Newcastle Science Central LLP and looking to commence construction works on site by 18.9.2017 (following 2nd stage tender period) with completion and handover of the building by 28.6.2019. Similar to previous University capital projects, the ‘Golden Brick’ structure on this project has been selected for tax planning and efficiency reasons. The structure requires Newcastle Science Central LLP (LLP) (a joint venture between Newcastle City Council and the University), the current owner of the site to initially appoint a building contractor under a form of NEC Contract. The contractor will progress the works to ground floor slab level (Golden Brick) at which point the NEC Contract (and associated documents such as guarantees and bonds) will be transferred from the LLP to the University. Once Golden Brick is achieved, the LLP will (i) transfer its interest in the site to the University and (ii) the NEC Contract will be transferred (or ‘novated’) from the LLP to the University. The NEC Contract will remain in place between the University and the successful contractor for the remainder of the LTC project. Prior to the award of the NEC Contract, the successful contractor will be expected to initially enter into a Pre-Construction Services Agreement (PCSA) with the LLP. During the ‘PCSA period’ the contractor will develop its designs and finalise its Prices for the works. Once complete, the PCSA will be replaced by the NEC Contract with the benefit of the PCSA being assigned on Golden Brick simultaneous with the NEC Contract novating from the LLP to the University. At the same time, the appointment of Sheppard Robson as architect may be transferred from the LLP to the successful contractor. In order to protect both the University and LLP's position both before and after Golden Brick a series of collateral warranties will need to be provided by the contractor, its consultants and sub-contractors. These will need to be given to the University prior to Golden Brick and to the LLP once Golden Brick has been achieved. The value of the works has been estimated at 29 100 000 GBP (21 500 000 GBP for building works, 7 200 000 GBP for external works and 400 000 GBP for post novation fees). Note that only the PCSA has been awarded at this stage and that the construction cost will only be confirmed at the end of the second stage. On this basis, only the PCSA fee has been included below.