Purpose

The report relates to a Planned
Award of Contract on behalf of London Borough of Croydon (LBC) for
the delivery of “Regina Road Estate Regeneration
Scheme” (hereinafter, “the Project”).
 
The Main Build Contract awarded
to the successful bidder will be for the delivery of Phase 1 of the
Regina Road Estate Regeneration Scheme. The Phase 1 works will
include the demolition of the existing buildings on the estate
(except 1-87 Regina Road which is already being demolished) and the
construction of a phased mixed-use development providing nine
blocks and five dwellinghouses containing 225 residential units, a
pre-school, a community space, a multi-use games area and
associated public realm, landscaping, play space, refuse/recycling,
car and cycle parking facilities and other associated
works.
The initial instruction under
the contract includes the completion of the detailed technical
design of contract Sections 1 & 2, the construction of Section
1 and the demolition of two buildings. The remaining sections of
the contract will be instructed under subsequent notices to
proceed, following necessary conditions being met including the
securing of Vacant Possession.
 
The project team have followed
a fully compliant procurement process.
LBC have appointed Pellings LLP in the role of Project Manager to
provide expert advice on the procurement and strategic delivery on
the Project.
The Project team have received
procurement and contractual advice from Browne Jacobson Solicitors
and LBC Legal Team to ensure the contractual basis and procurement
processes are robust and compliant.
 
The Tender process is due to
close on 5th September 2025. Comprehensive evaluation
and moderation processes will follow. Through the procurement and
due-diligence process, a successful contractor will be
identified.
 
The appointed contractor will
initially be engaged under a JCT Pre-Contract Services Agreement
(PCSA). Following completion of the PCSA, and subject to necessary
conditions being met, construction will be delivered under a JCT
Design and Build 2024 Contract with amendments, including a Notice
to Proceed Mechanism.  
 
The target is to appoint the
contractor to enable a start on site before the 31st March 2026 to meet GLA grant
requirements.
 
The decision to award has been
delegated to the Corporate Director for Housing pursuant to the
Council’s Contract Standing Orders.
 
Budget to be confirmed within
the award report.
 

Content

For the reasons set out in the
reports Part A & B and appendices, the Corporate Director for
Housing AGREED to: 
 

Approve the Council
entering a PCSA (Pre Construction Services Agreement) with Bidder D
for the services detailed in section 1 of this report at the cost
set out in the Part B report.? 

 

Approve Bidder D as
successful bidder in relation to the demolition and main build
contractor procurement process. 

 

To note that a Letter
of Intent with Bidder D may be required prior
to entering into the JCT
Design and Build contract (D&B contract), to enable the
contractor to place orders to support
the timely commencement of works on
site.  The anticipated maximum value of the
Letter of Intent is as set out in the Part B Report. The scope and
costs to be defined at a later
date during the PCSA period. 

 

To note that further
Key Decision reports will follow regarding the
Council entering
into the D&B contract relating to the
delivery of Section 1, (Block A) and
the subsequent Sections 2 to 5 phases of the
development. 

 

Reasons for the decision

To enable the Council to
receive the grant funding in accordance with current GLA
requirements, the Council needs to start on site by March 2026.
Appointing the preferred bidder for the PCSA stage allows the
Council to progress the designs with the contractor swiftly and in
a way that still mitigates risk.  This will support
in enabling the regeneration of Regina Road development
to proceed in a cost-effective way. 
 
The
evaluators’ panel has completed a detailed assessment of
the tenders received for the Regina Road Housing
Regeneration Scheme. The tender evaluation process was
conducted in accordance with the Council’s
procurement procedures and best practice
guidance.  
 
All five tender submissions
were initially qualified but required clarification to enable a
fair and consistent like-for-like comparison. The
evaluation comprised both technical and commercial
assessments, each undertaken independently
and subsequently moderated in accordance
with the agreed methodology. 
 
Bidder
D achieved the highest
overall evaluation score, ranking first
on both technical
quality and commercial assessment (lowest
compliant bid). Their submission demonstrated an
excellent understanding of the project’s scope
and objectives, with a clear and deliverable programme
that anticipates commencement on site by March
2026.  
 
Bidder D’s compliant and
competitively priced bid provides the greatest assurance of
quality, value, and timely delivery, fully aligning with
the Council’s project objectives. It
therefore represents the Most Economically Advantageous
Tender (MEAT). Entering into a PCSA with Bidder D is
recommended to secure early contractor involvement and
support in achieving successful commencement on site
by March 2026. 
 

Alternative options considered

In terms of
the initial options for procurement routes, these were
considered in detail at the Procurement Strategy stage through a
detailed option analysis before arriving at the preferred
procurement strategy of Option 1B - Single Contractor
Appointment (Integrated PCSA/Building Contract - Two Stage Design
& Build). The rationale for selecting this option along with
the other options considered including their respective costs &
benefits were included in the Procurement Strategy Report and its
Appendices.