Construction Contract Leads

Section I: Contracting authority

I.1) Name and addresses

UNIVERSITY OF KENT

The Registry

Canterbury

CT2 7NZ

Contact

Mark Reed

Email

m.reed [at] kent.ac.uk

Telephone

+44 1227824301

Country

United Kingdom

NUTS code

UKJ4 - Kent

Companies House

RC000656

Internet address(es)

Main address

https://www.kent.ac.uk/

I.4) Type of the contracting authority

Body governed by public law

I.5) Main activity

Education

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

Giles Lane Student Accommodation Project

II.1.2) Main CPV code

• 45000000 - Construction work

II.1.3) Type of contract

Works

II.1.4) Short description

A Public Works contract under Regulation 32(2) (b) (iii) of the Public Contract Regulations 2015 for the development of student accommodation at Giles Lane, Canterbury, Kent.

II.1.6) Information about lots

This contract is divided into lots: No

II.1.7) Total value of the procurement (excluding VAT)

Value excluding VAT: £51,000,000

II.2) Description

II.2.2) Additional CPV code(s)

• 45000000 - Construction work

II.2.3) Place of performance

NUTS codes

• UKJ4 - Kent

II.2.4) Description of the procurement

This Notice sets out the contracting authority's award of a works contract using the negotiated procedure without prior publication, in accordance with Regulation 32 of the Public Contracts Regulations 2015.The University of Kent (the "University") has entered into a transaction to secure new student accommodation ("the Transaction"). The University has entered into an Agreement for Lease ("AFL") with Canada Life (the "Fund") and Giles Lane Investments Limited (the "Developer") for the construction of 91 new student rooms (the "Development") on a property known as Landon, Giles Lane ("Landon") which adjoins the University's Canterbury campus.

The AFL contains obligations on the Developer to procure the construction of the Development and obligations on the Fund to grant an occupational lease to the University ("the Underlease") on practical completion of the Development. The Underlease will be a full repairing and insuring, financing lease, with limited rights of assignment by the University, containing an indexing rent with cap and collar. On expiry of the Underlease, subject to payment of all rents and interest to the Fund, the University will have the option to purchase the Headlease from the Fund for one pound (£1) (the Fund will also have the option to require the University to purchase the Headlease for one pound (£1)).

The Transaction comprises a number of other arrangements, including:

• a building contract between the Developer and a building contractor, and the appointments of a professional team by the Developer, with warranties in favour of the University;

• arrangements in respect of the construction and maintenance of a wetland, to satisfy a planning condition for the Development;

• licence arrangements to enable certain other wetland works to be undertaken on the University's campus, to satisfy a planning condition for the Development;

• the grant to the Developer of an option over other land of the University;

• the University received a payment on completion of the Transaction.

II.2.5) Award criteria

Price

II.2.11) Information about options

Options: No

Section IV. Procedure

IV.1) Description

IV.1.1) Type of procedure

Award of a contract without prior publication of a call for competition in the cases listed below

• The services can be provided only by a particular economic operator for the following reason:
  
  • protection of exclusive rights, including intellectual property rights

Explanation:

Negotiated Procedure without prior publication (Regulation 32(2)(b)(iii) Public Contracts Regulations 2015, as amended).

Explanation:

The University in good faith considers that the award of the contract without prior publication of a contract notice is permitted by Part 2 of the Public Contracts Regulations 2015 (as amended).

The University's justification for this view is that, in good faith, it considers that the works to be delivered under the contract can only be provided by a particular economic operator (i.e. the Developer) for the following reason: protection of exclusive rights under Regulation 32(2)(b)(iii) of the Public Contracts Regulations 2015.

The University considers that:

• the University requires new student accommodation urgently to meet its growing student demand and the Development is capable of being delivered in time for the September 2025 intake of students;

• the University's students demand "on campus" accommodation and Landon is ideally located on a site which adjoins, and can be incorporated into, the University's campus;

• the Developer holds exclusive rights to acquire Landon under the Option;

• the Developer's exclusive rights include;

o the Developer's rights in respect of Landon, pursuant to the Option;

o the fact that Landon adjoins the University's Canterbury campus;

o the Developer has secured planning permission for the Development;

o the Developer owns the intellectual property in the design for which planning permission has been obtained;

o the Developer has negotiated terms with a third party, to deliver a wetland on third party land, which wetland is required to satisfy a condition in the relevant planning permission;

o the Developer has negotiated terms with a funder and contractor, such that the Developer will commit (in the AFL) to delivering the Development in time for September 2025;

• this opportunity for the Development and the Transaction exists solely as a result of those rights;

• the absence of competition is not a result of artificial narrowing down of the parameters of the procurement by the University;

• no reasonable alternative or substitute exists for the delivery of so many rooms "on campus" in time for September 2025; and

• there is no reasonable alternative route to acquire Landon for development without it being a condition under the Transaction for the Developer to be the supplier appointed to undertake any development works.

IV.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

IV.2) Administrative information

IV.2.1) Previous publication concerning this procedure

Notice number: 2024/S 000-010427

Section V. Award of contract

A contract/lot is awarded: Yes

V.2) Award of contract

V.2.1) Date of conclusion of the contract

9 May 2024

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

Giles Lane Investments Limited

134 High Street

Hythe

CT21 5LB

Country

United Kingdom

NUTS code

• UKJ - South East (England)

Companies House

12093126

The contractor is an SME

No

V.2.4) Information on value of contract/lot (excluding VAT)

Initial estimated total value of the contract/lot: £51,000,000

Total value of the contract/lot: £51,000,000

Section VI. Complementary information

VI.4) Procedures for review

VI.4.1) Review body

High Court of England of Wales

Royal Courts of Justice, The Strand

London

WC2A 2LL

Country

United Kingdom

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