Silvertown Quays, Royal Docks

Concepts

• silvertown quays
• urban development
• royal docks
• silvertown partnership llp
• additional changes
• lendlease europe holdings ltd
• construction work
• detailed description of the changes
• veat notice
• mda

Location

London

Description

Silvertown Quays (SQ) is a 50-acre brownfield site in Royal Docks, London owned by GLA. In June 2013, after a procurement process, GLA entered into a Master Development Agreement (MDA) with the developer, The Silvertown Partnership LLP (TSP). In June 2018, a joint venture of Starwood (SOF-11 Developments UK Holdco Lux S.à r.l.) (SW) and a group company of Lendlease Europe Holdings Ltd (LL) acquired control of TSP. In 2018, the parties entered into documents including a Deed of Variation of the MDA; see Mayoral Decision 2280 30/05/2018 (https://www.london.gov.uk/decisions/md2280-silvertown-quays), VEAT notice published 09/06/2018 (https://ted.europa.eu/udl?uri=TED:NOTICE:247611-2018:HTML:EN:HTML&tabId=1&am...), CAN notice published 26/06/2018 (https://ted.europa.eu/udl?uri=TED:NOTICE:272398-2018:HTML:EN:HTML&tabId=1&am...). The parties have now made additional changes to the MDA, as described at II.2.4 below. These changes are considered permissible under regulation 72 PCR.

Total Quantity or Scope

SQ is a 50-acre brownfield site in Royal Docks, London owned by GLA. In June 2013, following a procurement for a development partner for a mixed use development at SQ, GLA entered into a MDA with the developer, TSP. In June 2018, a joint venture of a Starwood entity (SOF-11 Developments UK Holdco Lux S.à r.l.) (SW) and a group company of Lendlease Europe Holdings Ltd (LL) (the JV) acquired sole control of TSP. The parties entered into associated documents, including a Deed of Variation of the MDA. For more details, see Mayoral Decision 2280 of 30th May 2018 (https://www.london.gov.uk/decisions/md2280-silvertown-quays), VEAT notice published on 9 June 2018 (https://ted.europa.eu/udl?uri=TED:NOTICE:247611-2018:HTML:EN:HTML&tabId=1&am...) and CAN notice published on 26 June 2018 (https://ted.europa.eu/udl?uri=TED:NOTICE:272398-2018:HTML:EN:HTML&tabId=1&am...). The parties have recently made additional changes to the MDA concerning the following: (i) Minimum Requirements for 50% Affordable Housing and a minimum non-residential area, as well as associated financial changes; (ii) Milestone Events and associated Milestone Dates; (iii) potential division of Phases into Sub-Phases; (iv) Funding Condition and Headlease Grant Conditions; (v) Brand Pavilions (e.g. now required to be in a cluster rather than an avenue); and (vi) other minor changes. A detailed description of the changes outlined in the preceding paragraph is included in Part 1 of the associated Mayoral Decision 2784, which is publicly available on the GLA’s website (london.gov.uk) or here https://www.london.gov.uk/decisions/md2784-silvertown-quays-changes-master-devel.... These changes were also described in the VEAT notice published on 03.09.2021 and available here https://ted.europa.eu/udl?uri=TED:NOTICE:448156-2021:HTML:EN:HTML&tabId=1&am.... The authority considers these changes to be permissible under regulation 72 of the Public Contracts Regulations 2015 (PCR) on the basis that they do not constitute substantial modifications within the meaning of that provision. Even if the changes were considered substantial, the authority considers that they would fall within the exemptions laid down in Regulations 72(1)(b) and 72(1)(c) PCR. For more detailed reasoning, see the contract modification notice to be published at the same time as this contract award notice.

Award Detail

Award Criteria

CPV Codes

• 45211360 - Urban development construction work

Indicators

• Award on basis of price and quality.

Legal Justification

In 2011, GLA ran a competitive dialogue procedure to procure a developer to deliver the SQ Scheme, leading to the selection of TSP. GLAP entered into the MDA with TSP in June 2013. Various changes have subsequently been made to the MDA. The changes are outlined at section II.2.4 above and described more fully in Part 1 of Mayoral Decision 2784, which is publicly available on the GLA’s website (london.gov.uk https://www.london.gov.uk/decisions/md2784-silvertown-quays-changes-master-devel...). These changes were also described in the VEAT notice of 03.09.2021 available here https://ted.europa.eu/udl?uri=TED:NOTICE:448156-2021:HTML:EN:HTML&tabId=1&am... . GLA considers these changes to be permissible under regulation 72 PCR on the basis that they do not constitute substantial modifications within the meaning of that provision. Even if the changes were substantial, GLA considers that they would fall within the exemptions laid down in Regulations 72(1)(b) and 72(1)(c) PCR. For more detailed reasoning, see the contract modification notice to be published at the same time as this award notice.