Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
London Borough of Lambeth
n/a
Town Hall, Brixton Hill
London
SW2 1RW
UK
Contact person: Valentine Onwuchekwa
Telephone: +44 7785660185
E-mail: VOnwuchekwa@lambeth.gov.uk
NUTS: UKI45
Internet address(es)
Main address: http://www.lambeth.gov.uk
Address of the buyer profile: https://uk.eu-supply.com/ctm/Company/CompanyInformation/Index/18
I.4) Type of the contracting authority
Regional or local authority
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Delivery Partner for Growing Brixton’s Rec Quarter – 49 Brixton Station Road and 6 Canterbury Crescent
Reference number: 43828
II.1.2) Main CPV code
45000000
II.1.3) Type of contract
Works
II.1.4) Short description
The Council entered into a deed of variation with London Square Developments Limited (the Developer) and London Square Limited (the Guarantor) in relation to an existing development agreement between the parties (the Underlying Contract) which was entered into on 28 September 2022 to ensure the viability and deliverability of the scheme under the Underlying Contract. The key variations comprise a reduction in the minimum level of commercial workspace required in alignment with Local Plan policy for mixed-use regeneration schemes, a reduction in minimum affordable housing levels from 50% to 40% and a reduction in the Council's land receipt in line with revised financial modelling and which represents best consideration in today's market.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
161 978 600.00
GBP
II.2) Description
II.2.2) Additional CPV code(s)
70000000
70100000
II.2.3) Place of performance
NUTS code:
UKI45
II.2.4) Description of the procurement
The Council entered into a deed of variation with the Developer and the Guarantor in relation to an existing development agreement between the parties (the Underlying Contract) to address changing circumstances since the Underlying Contract was entered into in accordance with Reg. 72 of the PCR15. The location, duration and nature of the works remains broadly the same, still delivering new build housing, workspace, street market facilities and public realm improvements subject to a reduction in minimum affordable housing levels to 40% and a reduction in the minimum required level of workspace reprovision in alignment with Local Plan policy for mixed-use regeneration schemes. The Council has received commercial advice to review the updated financial appraisals and ensure that the costs and revenues are commercially reasonable, reflective of the wider market and represent best consideration for the Council
II.2.5) Award criteria
Price
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
The Council has entered into a deed of variation in relation to an existing development agreement in accordance with Reg. 72 of the PCR15. In accordance with Reg. 92 to 104 of the PCR15 the Authority has observed a 10 day standstill period starting from the date of the VTN publication. A modification notice was also published in relation to this Deed of Variation on 19/02/2025(2025/S 000-006029).
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Award of a contract without prior publication of a call for competition
Justification for selected award procedure:
The procurement falls outside the scope of application of the Directive
Explanation
A procurement procedure is not necessary on the basis that the award of the contract (the Deed of Variation) is permitted pursuant to regulation 72(1)(c) of the Public Contracts Regulations 2015. The need for modification has been brought about by significant domestic and international economic turbulence, including substantial build cost inflation, rises in UK interest rates and ongoing shifts in how businesses use and occupy workspace post-covid together with the implementation of legislative and regulatory changes with respect to Building Safety . The overall scheme remains broadly the same in nature delivering new build housing, workspace, street market facilities and public realm improvements. The Council has received commercial advice to review the updated financial appraisals and ensure that the costs and revenues are commercially reasonable, reflective of the wider market and represent best consideration for the Council. The Developer's percentage return has reduced. Moreover, the variation is also not substantial within the meaning of regulation 72(1)(e) of the Public Contracts Regulations 2015.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
No
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2025/S 000-008068
Section V: Award of contract
Title: Growing Brixton’s Rec Quarter – 49 Brixton Station Road and 6 Canterbury Crescent
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
19/03/2025
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
London Square Developments
974992059
One York Road, Uxbridge, Middlesex, UB8 1RN Middlesex
London
UB8 1RN
UK
NUTS: UKI74
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 161 978 600.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
The High Court
United Kingdom
London
WC2A 2LL
UK
VI.4.2) Body responsible for mediation procedures
The High Court
United Kingdom
London
WC2A 2LL
UK
VI.4.3) Review procedure
Precise information on deadline(s) for review procedures:
Pursuant to the Procurement Act 2023 (Commencement No. 3 and Transitional and Saving
Provisions) Regulations 2024 the Contracting Authority will conduct itself in accordance with
the Public Contracts Regulations 2015
VI.4.4) Service from which information about the review procedure may be obtained
Cabinet Office
70 Whitehall
London
SW1 2AS
UK
Telephone: +44 207261234
VI.5) Date of dispatch of this notice
19/03/2025