Urban development construction work

Tender description

Following a competitive dialogue pursuant to the Public Contracts Regulations 2006, the Homes and Communities Agency (the ‘Agency’) entered into an Agreement for Lease (‘AfL’) with Carillion (Maple Oak) Limited (‘Carillion’) on 16.10.2015. The original procurement exercise was split into 2 separate lots (Lot 1 — acquisition and development of Tower Works (procured by the Agency) and Lot 2 — the redevelopment/refurbishment of the former Engine House (which sits within the wider Tower Works site and procured on behalf of Leeds City Council)). Carillion was awarded Lot 1, and will be providing works and services connected to the acquisition and development of Tower Works. Due to circumstances which the Agency could not have foreseen at the time of the original procurement and upon execution of the AfL, the contractual documents in respect of Lot 1 must be varied as further described within this notice. The Agency believes these changes are consistent with regulation 72(1)(c) PCR 15. The original project comprised mixed commercial and private/affordable dwellings (the private element consisting of a ‘private sale’ scheme). The original intention was that one headlease would be granted to Carillion in respect of both the residential and commercial elements. Following execution of the AfL, the Agency has found that due to unforeseeable circumstances, the original structure for the scheme had to be adjusted, primarily due to the withdrawal of external equity in respect of schemes targeted at the sale market. The Agency has been advised that a private-rented scheme (‘PRS’) is now the only way to progress the development. In addition, external funders of PRS schemes would require a headlease of the development as security for their investment (i.e. rather than an underlease or the provision of a charge over all or part of the scheme). In light of this, the Agency intends to amend the contract documents to facilitate this.