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United Kingdom-London: Construction work
Modification of a contract/concession during its term
Section I: Contracting authority/entity
Section II: Object
London and Continental Railways Ltd (LCR) sought a contractor to undertake the retail redevelopment of the former Waterloo International Terminal (WIT) for retail fit-out by incoming tenants. The procurement followed a competitive dialogue process which was intended to be a brief and focused period to discuss amongst other topics logistics and methodology.
Section IV: Procedure
Section V: Award of contract/concession
Section VI: Complementary information
Go reference: GO-20181029-PRO-13463224.
Section VII: Modifications to the contract/concession
As described in the original contract notice published on 23/01/2018 (OJEU Reference: 2018/S 015-030086).
The Deed of Variation entered into between LCR and ISG on 19 August 2020 included various amendments which can be grouped as follows:
It has become necessary for dilapidation works to be carried out to certain enabling works previously carried out on the site by another contractor. It was not possible for LCR to have foreseen that these dilapidation works would become necessary as neither LCR nor ISG could have entered the site during the previous contractor's occupation. LCR considers that the inclusion of these dilapidation works in the Deed of Variation is permissible under Regulation 72(1)(b) as set out in VII.2.2) below.
This relates to four items: the movement of the original management suite and control room and staff welfare; revised location of waste compactor; and altered toilet entrance. The value also includes some abortive works costs and additional demolition works required. Some of these items stem from certain asset management decisions, related to a roof leak and the fact that some alternative space is now available which was not known about at tender stage. LCR considers that the inclusion of these works in the deed of variation is permissible under Regulation 72(1)(b) as set out in VII.2.2) below.
Other contract instructions
There are further modifications which fall within Regulation 72(5) as their value is below the relevant threshold for public works contracts and is less than 15 % of the original contract value.
Contractor loss and expense
The contractor will be reimbursed for the delays to the completion of the works in line with the terms of the contract. LCR considers that these changes are not substantial within the meaning of Regulation 72(8).
No earlier changes have been made to the contract.
Dilapidation works — GBP 4 492 605: In order for the project to continue, LCR has instructed ISG to remedy the dilapidation works. ISG now has possession of the site, and so it would not be possible for another contractor to carry out the dilapidation works as a change in contractor would result in a breach of the lease conditions. A change in contractor would also cause significant inconvenience for LCR now that ISG has possession of the site. The value of the dilapidation works is less than 50 % of the original contract value. LCR Changes — GBP 1 627 097: another contractor would not be able to do the work described in VII.2.1) above as this would breach the lease conditions since ISG have possession of the site. A change in contractor would also lead to significant inconvenience for LCR. The value of these changes is less than 50 % of the original contract value.