Refurbishment and conditional Disposal of the Seven Sisters, seven social housing large blocks of flats (social housing accommodation), and associated contracts.

Description

RBH owns, manages and operates the Seven Sisters social housing blocks of flats. RBH intends to conditionally dispose of the Seven Sisters to Legal and General Affordable Housing (LGAH). Prior to the conditional disposal, LGAH will invest heavily in the redevelopment / refurbishment of the Seven Sisters, social housing blocks of flats. In order for LGAH to protect its investment in the Seven Sisters social housing blocks of flats, RBH will appoint LGAH to project manage the delivery of refurbishment works via a Client Leadership Management Services Contract (CLMS contract). Within this role LGAH will oversee and monitor the redevelopment/refurbishment of the Seven Sisters social housing flats. The appointment of the project manager of the redevelopment /refurbishment works and of the contractor to carry out the refurbishment will be made pursuant to a fully compliant regulated procurement process. The appointment of the refurbishment contractor to carry out the redevelopment /refurbishment works will be made pursuant to a fully compliant regulated procurement process. The plan is that LGAH will take ownership of the Seven Sisters social housing blocks of flats shortly after the completion of the refurbishment of each block (partial transfer until full transfer of all seven blocks). LGAH will appoint RBH to project manage and operate the refurbished flats. Lot 1: This procurement is not subject to the Public Contracts Regulations 2015, because of Regulation 4. RBH, on 4th August 2023, has entered into a time limited (but extendable) exclusivity agreement (EA) with LGAH on the basis of which the parties have agreed a significant redevelopment / refurbishment project of the Seven Sisters (seven large block of social housing flats). The EA envisages the following five main arrangements (the proposed Arrangements): 1. RBH enters into a conditional sale/transfer agreement of the Seven Sisters to LGAH; 2. RBH appoints directly LGAH to project manage the delivery of the required refurbishment works in respect of the Seven Sisters flats via a Client Leadership Management Services (CLMS) contract. The CLMS Contract is a condition precedent of any funding to be provided by the LGAH; 3. LGAH will procure an Independent Project Monitor (IPM Contract), which is to be a joint appointment between the LGAH and RBH through a call-off from an appropriate and procurement rules compliant Framework Agreement (FA). The IPM contractor will provide the project management of the refurbishment works and will operate under a duty of care to all funders of the project; 4. RBH and LGAH will jointly procure and appoint a contractor to carry out the refurbishment works in respect of the Seven Sisters flats via a Pre-Construction Services Agreement (PCSA) and a JCT Design and Build contract (JCT D&B). The PCSA and the JCT D&B Contracts (together the Construction Contract) will be procured in accordance with the relevant public procurement rules; and 5. LGAH and RBH will enter into a Long-Term Management Agreement (LTMA) under which LGAH (as ultimate landlord of the Seven Sisters) will appoint RBH to manage the Seven Sisters flats on a long-term basis after the refurbishment works have been completed. RBH is of the view that the main purpose of the Arrangement is the conditional sale of the Seven Sisters. LGAH will make a significant upfront investment for the redevelopment / refurbishment of the Seven Sisters. The CLMS contract (awarded directly by RBH to LGAH), is considered critical by LGAH to protect its investment. It is for this reason that the CLMS contract is considered to be non-severable (according to Regulation 4 of the Public Contracts Regulations of 2015, as amended (PCR15)) and ancillary to the conditional sale. The other four arrangements are fully compliant with the relevant public procurement rules/ PCR15. LGAH is not a contracting authority for the purposes of the relevant public procurement rules as it is a Registered (for profit) Housing Provider. RBH decided ultimately to approach LGAH following a failed procurement process in 2019 and many unsuccessful attempts to generate some market interest for the Seven Sisters which had led RBH to a provisional decision to demolish four out of the Seven Sisters blocks. Additional information: This procurement is not subject to the Public Contracts Regulations 2015, because of Regulation 4.