CPCA - University of Peterborough Phase 2 contractor

Tender description

the appointment of a contractor for the phase 2 build of the projectThis contract is one part of delivering a new University of Peterborough. The Project is due to be delivered through a phased approach and the establishment of a number of Special Purpose Vehicles which facilitate various applications for various government funding streams along with securing private investment. Because each phase of the project is being facilitated by different, specifically formed, property companies, with different shareholders and shareholding ratios, the delivery of Phase 1 and Phase 2 are by two different clients (both of which include the CPCA as a majority shareholder) and which are governed by the Public Contract Regulations 2015. In addition, each phase is funded separately as funding streams are identified or become available. In this instance, the funding that has been identified has only become available in response to the economic impact of COVID and as a means to aid the recovery of the economy by creating new jobs. The contract being notified under this notice is for the construction of the phase 2 building which was not originally to be procured until mid 2021. However, funding has been sought and approved under the Get Building Fund, a condition on which is that that building must be completed by January 2022. This can only be achieved if delivered on a spade ready, accessible piece of land for which surveys, approvals, utilities and other searches have already been completed as the time needed to carry out these activities, in addition to the design and construction timescales, would result in the project being undeliverable by the funding deadline. As such, the strategic decision was taken to locate the building within the same site boundary as the phase 1 building for which all of these activities have been completed. The Contract, either competitively let or directly awarded, would be tendered under a two stage process (construction terminology) whereby the contractor is to be appointed on Profit and Overheads only (initially under a Pre-Construction Service Agreement and then, once the design is finalised and costed, under a JCT contract. The build has a maximum budget of £15,000,000 excluding VAT. The justification for direct award is as follows 1. Exclusive Rights (Regulation 32(2)(b)(iii) • The land on which the phase 2 building is to be built is within the land envelope that was originally surveyed, investigated and subject to planning consent for the delivery of Phase 1. The delivery of Phase 1 has commenced, and the land has been handed over to the contractor for delivery. • With the plot of land allocated for phase 2 sitting to the south of the phase 1 site, the only access to this area is through phase 1 which itself is accessed from Bishops Road, through the PCC Pool Car Park. • The CPCA has considered the following alternatives o Establishing another access point into the other end of the site – the design, planning, implementation of which is prohibitive of this being a solution o creating a second access into the carpark – again the requirements for which are prohibitive o Creating a shared access through the current car park access which would divide the site and compound in two – this would create the following issues ? risks of traffic backlogs on the dual carriage way as there would be two contractors receiving sequenced deliveries ? restricted site movements for access vehicles and cranes as the site division and hording would need to be located through the same point as the tower crane needs to be erected to enable full site access whilst minimalizing over-sailing issues and which would both create time delays for the build programme and potentially jeopardise the successful delivery of the phase 1 build and September 2021 opening and the funding obligations under phase 2 ? the division of the site into two sites will impact the H&S management and site traffic plan as the reduced space will reduce vehicle accessibility and impact COVID one-way system and spacing requirements. o The use of an alternative location within the masterplan – this option would require new searches, surveys, planning, and land transfer delays which would be prohibitive of the funding time constraints. o The use of land outside the masterplan – no other land in Peterborough has been designated as being for education purposes and so the selection of any other land would require considerable time requirements around planning consent for both purpose and build and this is time prohibitive. • Health and Safety Risks - The Phase 1 contractor has sole rights of access to and over the site in accordance with their successful award of a contract to deliver both the phase 1 building and the site landscaping. The contractor priced and won the contract based on sole access and responsibility for the whole site and an amendment to this regarding shared access and responsibility for ensuring a holistic Health & Safety Strategy and Traffic Management Plan sharing the site with a different contractor would be a material change to their contract, working conditions and impact project costs and programme. • Programme Risks - the phase 1 contract price and programme was tendered on a fixed competition date with any mitigation actions that may be required for delay or to ensure delivery being solely at the contractor's cost; the inclusion of a second contractor and additional site constraints present a programme risk to the phase 1 contractor that would create either a risk or price variation that could be considered a material change such that, in both cases the access to the site and the delivery of phase 2 should be protected and therefore be delivered by the phase 1 contractor. • Time Constraints – the delivery of the phase 2 building is only achievable if the location, contractor appointment and planning process can be accelerated to ensure it meet the deadlines of the Prime Minister’s 'Get Building Fund' initiative for which the secretary of State, Robert Jenrick issued a call for “shovel ready” building projects that could provide an immediate, post-COVID injection of jobs into the economy. The availability of this funding was unforeseeable by the CPCA and so the inclusion of this build was not included in the phase 1 contractor procurement. In consideration of the time constraints, the health & safety/ traffic management risks, the impacts of multiple contractors within a single project land envelope and the commercial implications on both phases, the Property Company and the CPCA have concluded that the only feasible solution to ensure delivery and mitigate the identified H&S, programme and site management risks, the decision has been made to directly award to Bowmer & Kirkland (the Phase 1 contractor) and as such, are publishing this notice to transparently inform the market of the decision and its justification. Keywords: construction, university