Public procurement notice: Works Concession
Published: 2017-05-17
Buyer: London Borough of Havering
Country: UK
Region: Outer London - East and North East
Contract type: Works
Procedure: Concession award procedure
CPV classification: 45111000 | 45112700 | 45112710 | 45112711 | 45211300
Estimated value: 800000000 GBP
Submission deadline: 2017-06-13
Award criteria: Other
EU fund: ESF

Technical requirements: The Council is seeking to appoint a partner to form a long term corporate joint venture property vehicle (on a 50:50 ownership basis) to secure investment and expertise to deliver Havering's housing led regeneration strategy. The initial programme is anticipated to involve 12 sites across the borough delivering in the region of 3 000 new homes. The scheme will involve opportunities for development sales in partnership with the Council. The housing led development of sites may also involve a degree of mixed-use development including, but not limited to office, commercial, leisure, retail, community and public realm space being delivered ancillary to the residential focus and as part of the overall complex. The JV duration will be for an initial period of 15 years, with extension periods of 5 years, up to a maximum duration of 30 years.
The opportunity is a major regeneration and development project to deliver new housing in the London Borough of Havering. The opportunity will focus on Council owned sites throughout the borough (including but not limited to the initial 12 sites) and potentially other sites acquired by the Council (including through the JV) during the joint venture period. The JV will focus on delivering housing within the borough for the commercial private sale sector, shared ownership and affordable housing.
Estimated value range of the eventual procurement may be in the range of: GBP 650 million — GBP 800 million in relation to the initial twelve sites. The estimated value relates to the estimated gross development value in the market of the developed assets. Continues at III.2.2 below.
Further information and details about the scope of the procurement are set out in the Memorandum of Information as part of the procurement documents available at https://www.capitalesourcing.com/web/login.shtml
The estimated values in II.1.5 and II.2.6 represent the potential commercial value of the development. However, potential returns will depend on many commercial factors including (but not limited to) the performance of the developer and market conditions. Bidders should seek independent legal and commercial advice in relation to the potential value of the opportunity and the scheme as a whole.
The partner will be required to provide services including (but not limited to) master planning; strategic development consultancy advice; environmental consultancy advice; technical and building services; architectural design; urban design and landscaping; physical construction and development; land assembly; possible refurbishment of assets and marketing and disposal of development assets.
The initial estates identified for regeneration are: Waterloo Estate; Queen Street; Napier House and New Plymouth House; Serena, Solar and Sunrise; Oldchurch Gardens; Maygreen Crescent, Park Lane; Dell Court; Royal Jubilee Court; Delderfield House; Brunswick Court; Chippenham Road, Farnham Road, Hilldene Avenue; and Delta TMO Estate with the first 4 sites prioritised for development.
The partner may be required to help achieve social and/or environmental policy objectives relating to recruitment, training & supply-chain initiatives. Contract performance conditions may relate to these considerations.
The Concession Contracts Regulations 2016 (CCR 2016) applies to the award. The Council intends to follow a process similar to the Competitive Dialogue procedure in the Public Contracts Regulations 2015 (as amended) (PCR 2015). It reserves the right to deviate from the formalities of the PCR 2015 in conducting the competition due to the flexibilities permitted by the CCR 2016. Award criteria and further concession documents will be provided at the start of the competitive dialogue stages to bidders that are shortlisted to participate. Expressions of interest applications must be by way of completion and return of the selection questionnaire (SQ) (in accordance with the requirements set out in the SQ by the time limit in Section IV.2.2 above). The SQ is available via https://www.capitalesourcing.com/web/login.shtml. The Council reserves the right not to award the opportunity or to award only part (or a different arrangement) of the opportunity described in this concession notice.
In accordance with Regulation 47 (Notice of decision to award a concession contract); Regulation 48 (Standstill Period) and Regulation 52 to 63 of the Concession Contracts Regulations 2016 (CCR 2016).
Following any decision to award the concession contract, the contracting authority will providing debriefing information to unsuccessful bidders (in accordance with Regulation 47 CCR 2016) and observe a minimum 10 day standstill period (in accordance with Regulation 48 CCR 2016) before the concession contract is entered into.


Award value: 800000000