URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2593

Decision Maker: Corporate Director of Housing

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

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: 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.   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.    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.    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. 

Date of Decision: October 30, 2025