SOL - Building Repairs, Maintenance & Construction in a Partnering Arrangement (Out of Borough) - Modification

Contracts

• Contract 000868-2023-CONTRACT - 00012488-1 · John Graham Holdings Limited (trading as Grahams FM)

  Signed

  31 Aug 2013

  Value

  £400,000,000

  Period

  1 Jul 2023 – 31 Oct 2024

  Status

  active

  • Change The modification is limited to extending the contract duration for a further 16 months, and in accordance with Regulation 72.1 (c) shall not exceed 50% of the value of the original contract., Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee: Consultation with a broad range of the supplier market was undertaken who expressed that the upturn in market conditions brought about due to recovery from COVID-19 has led a more selective and risk adverse approach to tender opportunities. In addition, despite the model of contract being similar to the current contract which when tendered had generated considerable interest, in a recent tender the contract was deemed to be unusual and unappealing by the companies consulted. The Authority intends to conduct a thorough market engagement during the period of this contract extension in order to prepare and present an opportunity that will be of interest to the wider industry to establish a long-term partnering agreement, and at a time when the market conditions have stabilised. Regulation 72.-(1) (c) The need for this modification has been brought about by circumstances which a diligent contracting authority could not have foreseen. The Authority could not have reasonably foreseen the occurrence of the COVID-19 Pandemic and its resulting impacts upon the industry. The proposed modification does not alter the overall nature of the contract and we can confirm that the specification, pricing and terms and conditions of the original agreement will not materially change. The increase in duration would not cause the overall price to exceed 50% of the value of the original contract. The realised value of the framework to date is lower than advertised, and the cumulative value including the modification will not result in the advertised value being met or exceeded. Regulation 72.-(1) (e) with reference to; Regulation 72.-(8) a) The modification does not render the contract materially different in character from the one initially concluded, as the specification, terms and conditions of contract, and pricing will not materially change and where change is required it will only be minor. b) The Authority considers that the modification does not introduce conditions which, had they been part of the initial procurement procedure, would have allowed for the admission of other candidates than those initially selected. This is because the specification, terms and conditions of contract, and pricing will not materially change and where change is required it will only be minor. i. The Authority considers that the modification would not have allowed for the acceptance of a tender other than that originally accepted, because the specification, terms and conditions of contract, and pricing will not materially change and where change is required it will only be minor. ii. The authority considers that the modification would not have attracted additional participants in the procurement procedure, as the specification, terms and conditions of contract, and pricing will not materially change and where change is required it will only be minor. We do not consider that the additional 2-year contract duration would have attracted additional participants. iii. The modification does not change the economic balance of the contract in favour of the contractor. c) The authority does not consider that the modification extends the scope of the contract considerably, as the specification will not materially change and where change is required it will only be minor. d) The contract will continue to be performed by the supplier originally awarded the contract.

Dispute resolution & review bodies

• High Court, Royal CourtReview body London