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 VI.3 below.

Award Detail

Award Criteria

CPV Codes

• 45000000 - Construction work

Indicators

• Award on basis of price and quality.

Legal Justification

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.

Other Information

By a Deed of Variation entered into on 21 December 2022 the Contract has been modified to extend the Completion Dates for: - Landkey Junction from 30 September 2021 to 31 March 2022; and - Remainder of Works, Landscape and Ecological Works, and Average Speed Camera from 22 December 2023 to 31 March 2024. The Deed of Variation also provides for an increase in the agreed total of the prices from the activity schedule from £40,802,126 to £46,158,323 (an increase of £5,356,197, or 13%). The scope of the works has also been amended as follows: - Removal of approx. 1.5km overtaking section between Portmore and Landkey junctions; - Removal of the requirement to improve the Bishop Tawton roundabout (including creation of a subway) and replace with signalised junction with a toucan crossing facility; and - Removal of the requirement to replace permanent fencing on site. The Council estimates that the above amendments to the scope of works will result in savings to the contractor of approx. £4.7M.