CP1629-18 North Devon Link Road

CPV: Construction work

Procedure method

Award procedure without prior publication of a call for competition

Legal basis

CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)

Procurement category

Works

Notice status

Awarded without competition

Procurement threshold

Unspecified in notice

Regulatory regime

Standard

Commercial structure

Stand-alone contract (no framework)

Competition type

Direct award (no call for competition)

GPA / WTO covered

Yes (GPA)

Recurring procurement

Unspecified in notice

First published

23 Jan 2023, 10:02 GMT

Last source update

23 Jan 2023, 10:02 GMT

Authority reference

DN370137

FTS notice number

2023/S 000-001956

Classification (CPV)

Construction work

Delivery area

South West (UKK43)

Official registry OCID

ocds-h6vhtk-039998 Find a Tender

Why no open competition

The procurement falls outside the scope of application of the directive

Published justification

The Council considers that these modifications to the Contract are permitted by Regulation 72(1)(c) of the Public Contracts Regulations 2015 (as amended) (“PCR”). Tenders (including prices) were submitted in November 2020. Since then, inflation has increased dramatically, caused in part by the war in Ukraine whose extent and duration was unforeseeable. In relation to many aspects of the works, inflation has hit 25%. This analysis is supported by data from the Building Cost Information Service and the forecasts of the Bank of England’s Monetary Policy Committee. The extent of these inflationary rises could not have been foreseen. In response to them the Council has agreed to a relatively modest reduction in the scope of the works (as detailed above) which will result in savings to the contractor of around £4.7M. The Council has also agreed to a 13% overall increase in the price paid to the contractor. Increases have been agreed in relation to some of the activities set out in the contractor’s Activity Schedule. The increases have been limited to evidenced increases in the cost of works caused by inflation, agreed on an open book basis. These modifications do not alter the overall nature of the Contract, and the increase in price is well below 50% of the original contract value (Regulation 72(1)(c)(ii) and (iii) of the PCR).

The Council also considers that these modifications to the Contract are permitted by Regulation 72(1)(e) of the PCR. They do not render the Contract materially different from the one initially concluded. The reduction in scope is relatively modest in the context of the works as a whole. Because the increase in price is limited to addressing the increase in the cost of works caused by inflation, it would not have resulted in a different outcome to the original procurement. Furthermore, because the increase in price is limited to addressing increased cost, it does not affect the economic balance of the Contract. The scope of the Contract has not been extended. For these reasons, the modification is not substantial within the meaning of Regulation 72(8) of the PCR.

Publisher note: By a Deed of Variation entered into on 21 December 2022 the Contract has been modified to extend the Completion Dates for: - Landkey Junction from 30 September 2021 to 31 March 2022; and - Remainder of Works, Landscape and Ecological Works, and Average Speed Camera from 22 December 2023 to 31 March 2024. The Deed of Variation also provides for an increase in the agreed total of the prices from the activity schedule from £40,802,126 to £46,158,323 (an increase of £5,356,197, or 13%). The scope of the works has also been amended as follows: - Removal of approx. 1.5km overtaking section between Portmore and Landkey junctions; - Removal of the requirement to improve the Bishop Tawton roundabout (including creation of a subway) and replace with signalised junction with a toucan crossing facility; and - Removal of the requirement to replace permanent fencing on site. The Council estimates that the above amendments to the scope of works will result in savings to the contractor of approx. £4.7M.

• Alun Griffiths (Contractors) LtdAwarded supplier Abergavenny, South West

No document links were published on the notice.