Published date: 19 July 2024

Awarded contract - This means that the contract has been awarded to a supplier.


Closing: 5 November 2021, 5pm

Contract summary

Industry

  • Construction work - 45000000

Location of contract

England

Value of contract

£88,200,000

Procurement reference

HCA001-DN536322-77438466

Published date

19 July 2024

Closing date

5 November 2021

Closing time

5pm

Contract start date

1 April 2022

Contract end date

31 March 2030

Contract type

Works

Procedure type

Other

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

Description

Homes England's Cottingwood Phase 1 site at the former St Georges Hospital, Morpeth is a residential development delivering 260 homes with 15% affordable. This was originally procured via Homes England's Development Partner Panel 3 (DPP3) during 2021/22. The purpose of this additional contract notice is to provide explanation of a modification that has become necessary since the original contract was agreed. The details of this modification are provided below.
Please note that contract dates have been revised to reflect the updated timescale and the value has been increased to reflect the updated Gross Development Value (GDV). Costs have increased to a higher degree resulting in the reduction in land value outlined in the additional details section. This notice and the previous notice do not disclose the land value for commercial sensitivity reasons.

More information

Additional text

The purpose of this additional contract award notice is to fulfil transparency obligations necessary to validate the modification of the contract during its term. The original award notice's reference was THCA001-DN536322-77438466.
The ground for this modification is 'the need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee' (Regulation 72.1(c)). The land value, as assessed at the time of the tender, has reduced by 17.1% in net present value terms. This change does not undermine the original award decision and is within 50% of the original tendered value permitted by this ground.
A Supplemental Agreement was exchanged between Homes England and BDW Trading Limited on 28th June 2024 to reflect the approved changes to the land price as a result of the macroeconomic impacts experienced since the Agreement for Lease was exchanged on 31st March 2022. The macroeconomic impacts are principally cost inflation, which has outweighed forecast value growth, and a requirement to extend the build programme due to the current and projected delivery and sales pace.
The impact on the land price has been mitigated by changes to other commercial terms.

Award information

Awarded date

24 February 2022

Contract start date

1 April 2022

Contract end date

31 March 2030

Total value of contract

£88,200,000

This contract was awarded to 1 supplier.

Barratt Developments Plc

Address

Birchwood Park, Warrington, WA3 6XF

Reference

None

Supplier is SME?

No

Supplier is VCSE?

No

About the buyer

Address

The Lumen
St James Boulevard, Newcastle Helix
Newcastle upon Tyne
NE4 5BZ
United Kingdom

Email

etendering@homesengland.gov.uk

Website

https://www.gov.uk/government/organisations/homes-england