CP1629-18 North Devon Link Road

Concepts

• devon county council
• construction work
• exeter
• build of a road scheme
• 1629-18 north devon link road
• a361 north devon link road
• further details of the original contract
• barnstaple
• south molton
• design

Location

Exeter

Description

Devon County Council entered into a contract for the design and build of a road scheme on the A361 North Devon Link Road (“the Contract”). The scheme extends between Portmore Roundabout (outskirts of Barnstaple) and Filleigh Cutting (approximately 3 miles north of South Molton), also incorporating Hacche Lane and Borner’s Bridge junctions. The opportunity was advertised under OJEU Notice reference 2019/S 086-204985 and the contract entered into on 30/11/2020. Further details of the original contract are set out in that OJEU Notice. The Contract has been modified as described in section VII.2.1 below.

Ammendments to Previous Notice

Award Detail

CPV Codes

• 45000000 - Construction work

Indicators

• Contract modified due to unforeseen circumstances.

Legal Justification

The reasons for modification can be found within Section VI.3 Additional Information.

Other Information

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.