Purifier Studios - Award of Phase 2C VEAT Notice

Concepts

• purifier studios
• glasgow
• construction work
• award of phase 2c veat notice
• respect of phases 2c work
• delivery of the third phase comprising of unit
• phase 2c
• standalone business studios
• purifier studio development
• refurbishment of the existing buildings

Location

Dalmarnock, Glasgow

Description

This project will deliver the refurbishment of the existing buildings into commercial office suites creating interesting and innovative spaces which will attract occupiers to Dalmarnock. The refurbishment of the building has been designed to be subdivided into five standalone business studios within the existing structure - offering total of 3,759sqm of business space and up to 300 jobs. This project (Phase 2C) will complete these works with the construction and delivery of the third phase comprising of unit 5 and the external landscape area and carparking associated with units 3-5. delivering approximately 746sqm (8,029sqft) of net lettable office space, across ground and mezzanine levels.

Total Quantity or Scope

This Voluntary Ex-Ante Transparency (VEAT) Notice is published setting out Clyde Gateway Developments Limited (CGDL) intention to extend the Phase 2A contract with Clark Contracts (CCL) in respect of Phases 2C work comprising Unit 5 and externals works of the purifier studio development.

Award Detail

CPV Codes

• 45000000 - Construction work

Legal Justification

CGDL let the original contract earlier this year (2019/S 213-521572). Recently, CGDL learned that the Scottish Government is prepared to make additional funding available for the development of this site a condition of which requires legal commitment and a grant claim by 31st March 2021. There is a substantial risk that this condition would not be met if the contract were to be procured separately. Loss of funding would mean that the development would not be able to proceed at this time as part of the current build leading to substantially increased costs in future as and when the development does proceed. The Directive / Public Contracts (Scotland) Regulations 2015 are not applicable to the additional works because, at 1.79m GBP of additional works, Phase 2C has an estimated value substantially less than the financial threshold at which those rules apply. Even if the Directive / Regulations did apply, the award of additional works would be permitted on the basis of Regulation 72(1)(b) justifying the instruction of additional works to the original contractor. Clark Contracts currently have possession of the site and are currently on-site delivering Phase 2A. It would not be realistic or technically possible to have a second contractor working within the same constrained footprint of a historic building at the same time as Clark Contracts to deliver work to CGDL's required timescale. This would also necessitate renegotiation of the current contract with Clark Contracts who have possession to carry out the Phase 2A works. There would be substantial duplication of costs such as preliminaries; allowing the contractor who is already on site and who has already incurred these costs on Phase 2A to continue is clearly advantageous to CGDL from a cost perspective. Moreover, the design team has been novated to Clark Contracts under the Phase 2A contract. Awarding the additional works to Clark Contracts under a single contract will also ensure that the contract, warranties and collateral warranties are unaffected and available to future tenants, purchasers or funders. The original contract was awarded with a value of 5.499m GBP and the additional works are therefore considerably less than 50% of the value of that contact. Finally, CGDL notes that Clark Contracts Limited was the only contractor who responded to the openly advertised tender for the original contract.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** NOTE: To register your interest in this notice and obtain any additional information please visit the Public Contracts Scotland Web Site at https://www.publiccontractsscotland.gov.uk/Search/Search_Switch.aspx?ID=642249. (SC Ref:642249)