Development of a Package Deal for the provision of affordable housing in Pembroke Dock

Scope, procedure and submissions

Id

PROC/2425/047

Status

complete

Review Details

In accordance with Regulation 88 - 104 (Enforcement of duties through the Court) of the PCR. Continued from Annex D1. The Council does not consider that a reasonable alternative to CGL’s proposal exists which would result in the Council securing the development of a moderately sized (for Pembrokeshire) affordable housing development at pace. Furthermore, the lack of available (and suitable) land within the locality to deliver the proposed housing by an alternative contractor presents a real obstacle. As such, the Council does not consider that it is possible for the development to be delivered by anyone other than CGL/CCL. As set out in this notice, the Council intends to purchase the Site from PTDSPV and immediately afterwards enter into a construction works contract with CCL for the delivery of housing on the Site. The opportunity offered to the Council by the Castell group comprises the following two linked transactions: (i) the purchase of the Site by the Council from PTDSPV; and (ii) the award of a works contract by the Council to CLL, these being inseparable components of the transaction, representing a “package deal” contract which can only be delivered by CCL. For the reasons set out in this notice the Council considers that only CGL/CCL would be able to deliver the works because of the need to protect exclusive rights (given PTDSPV’s ownership of the Site and CGL’s controlling interest in PTDSPV) and that no reasonable alternative or substitute exists.

Procurement Method

limited

Main Procurement Category

works

Procurement Method Details

Negotiated without publication of a contract notice

Why this procedure was chosen

The Council has a corporate priority that aims to increase the supply of affordable housing and social homes and is seeking to expand its housing stock to satisfy local housing need. The Council considers the need for social and affordable housing in the development area to be significant and that the proposed transactions with PTDSPV and CCL will help the Council to meet housing demand. Furthermore, delivering the housing on the Site as described in this notice will assist the Council to meet its own homes targets as well as the targets set by Welsh Government. In recent years the Council, when conducting procurement exercises to appoint contractors to deliver residential developments on Council-owned land, has experienced a lack of interest from the market, with there being no bids received or any bids not being viable. Attracting a new contractor, such as CGL/CCL, to Pembrokeshire, which specialises in social housing builds with a proven track record of delivering such homes across Wales to WDQR standards is highly desirable, given that the Council has struggled to attract housing contractors to the local market previously. The Council considers that there is limited availability of land/suitable sites in the Local Development Plan within Pembroke / Pembroke Dock which are designated to allow for residential development of this scale and without significant site challenges that impact development viability. For this reason, the proposed development is only capable of being delivered on the Site. The proposal by CCL is for a development programme of 18 months]). CCL estimates commencing the development in April 2025, which would mean completion in early 2027. The speed of delivery is particularly attractive to the Council because of the extreme housing need currently being experienced across the county. The Council currently has a significant spend on long term bed and breakfast accommodation approx. 3mGBP p.a. to house homeless residents. This level of spend is unsustainable and therefore there is a pressing need to accelerate the delivery of affordable homes. Continued in VI.4.3)

Lots and requirements

Items and delivery

Buyer, suppliers and contacts

Award information

Contracts and changes

Recorded locations

• Buyer location · Pembrokeshire · UKL14 · SA61 1TP · United Kingdom
• Delivery location · UKL14