Public procurement notice: Voluntary Ex Ante Transparency Notice
Published: 2020-11-17
Buyer: Trafford Housing Trust Ltd and THT Developments Ltd
Country: UK
Contract type: Works
Procedure: Contract award without prior publication
CPV classification: 45000000: Construction work
Estimated value: 30885000 GBP

Technical requirements: The project is the carrying out of a mixed tenure housing development on the Site at Clitheroe Road through a joint venture arrangement. The development will comprise the construction of 188 new homes (131 private sale units, and 57 affordable units) and required highways and drainage infrastructure works.
(i) THT Developments Ltd (an entity within Trafford Housing Trust's group) and Lovell Partnerships Ltd (Lovell) will form a joint venture entity (the ‘LLP’) on a 50/50 basis pursuant to the terms of an LLP Agreement;
(iii) The LLP will award a construction contract to Lovell for the carrying out of the construction works on the Site. The construction works will consist of the construction of the affordable and private sale units and required highways and drainage infrastructure works;
(iv) The LLP will enter into a Corporate Services Agreement (CSA) and Project Services Agreement (PSA) with Lovell. Under the PSA Lovell will be providing pre-construction services, technical advice and project management of the detailed construction design, preparation of the business plan and project programme and all required reporting requirements to the LLP. Under the CSA Lovell will be providing administrative, corporate and financial services to the LLP including all required taxation, audit, accounting and payment requirements.
(vi) Trafford will enter into an affordable housing development agreement with the LLP for the delivery of the affordable housing units that are constructed on the Site. The affordable units will be retained by Trafford following completion.
It is anticipated that the LLP will be formed in early 2021. In this Notice this entity shall be referred to as The LLP.
The contracting authorities consider that the contractual arrangements referred to in section II.2.4) of this notice fall outside the scope of the Directive 2014/24/EU and of the Public Contracts Regulations 2015 (PCR) for the following reasons:
1) The LLP Agreement is an agreement for the establishment, governance and operation of the LLP. It is not a works, services or supply contract for the purposes of the PCR, hence it falls outside of their scope;
2) The Site Transfer Agreement is an agreement for the disposal of an interest in land, and so is excluded from the scope of the PCR by virtue of Regulation 10(1)(a) of the PCR. It will not place the LLP under a positive and enforceable obligation to develop the Site to a specification prescribed by Trafford;
3) The construction contract, CSA and PSA to be awarded by the LLP fall outside the scope of the PCR because the LLP will not meet the definition of a ‘body governed by public law’ in Regulation 2(1) of the PCR nor, therefore, will it be classified as a ‘Contracting Authority’ for the purposes of the PCR. This is due to the fact that the LLP will have a commercial character on account of it being a ‘for profit’ entity with general commercial objects which exists for the predominant purpose of maximising profits from the development activities it undertakes;
4) The Affordable Housing Development Agreement is to be awarded by Trafford to the LLP pursuant to Regulation 32(2)(b)(iii) of the PCR. Due to an exclusive right which the LLP will have at the point of award of the agreement (being its ownership of the Site) Trafford will only be able to appoint the LLP to deliver the affordable units for it. It will not be in position to procure the delivery of the affordable housing units from any other party.
The affordable housing works to be carried out pursuant to the affordable housing development agreement will be sub-contracted to Lovell Partnerships Ltd under the construction contract.
It is intended that the contractual arrangements referred to in this notice following a minimum 10 day calendar day standstill period starting on the day after this notice is published in the Official Journal of the European Union. The Public Contracts Regulations 2015 (SI 2015 No 102) (as amended) (the Regulations) provide for aggrieved parties who have been harmed or who are at risk of harm by a breach of the Regulations to bring proceedings in the High Court. Any such proceedings must be brought within the limitation period specified by the Regulations according to the remedy sought.


Winner: Lovell Partnerships Ltd
Award value: 30885000