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Summary, notice description and lot information
Surrey County Council, a regional authority located in Reigate, United Kingdom, has awarded a contract for the SCC IC Extra Care Housing Phase 2 delivery project. The procurement involved the design, build, finance, and operation of extra care housing at Colebrook, Orchard Court, and Birchlands, resulting in approximately 219 affordable housing units. This procurement was concluded under the Competitive Procedure with Negotiation, aligning with the Public Contracts Regulations 2015.
The project falls under the 'construction work' industry category, covering the main works in 'sheltered housing construction' and related categories. The award was formalised on 31 March 2025 and involved bidders such as Places for People Living Plus Ltd. and BMOR Consulting Ltd.
This tender presents substantial business growth opportunities for construction companies with expertise in housing projects, particularly those focusing on community health and residential facilities. Companies with experience in building and managing residential properties, nursing homes, and community health services are well-positioned to leverage this opportunity to expand their portfolios. The scope of the project, inclusive of designing and constructing with long-term operational commitments, offers a platform for businesses to demonstrate innovation in the development and management of affordable housing solutions.
As the council may extend the agreement to additional units, responsive bidding and strategic partnerships will be key differentiators for success in this sector.
Surrey County Council is seeking to procure a supplier to undertake the design, build, finance and operate (DBFO) of an extra care housing provision at 3 sites: Colebrook, Orchard Court and Birchlands. The 3 sites are anticipated to deliver in the region of 219 affordable housing units. The object of this tender opportunity is the design, build, finance and operation of extra care housing schemes. Upon the completion of the construction of the extra care housing, the successful bidder will be required to provide the landlord and housing management element of the service. The Council is proposing to offer an agreement for lease and subsequently a minimum 125-year ground lease to the supplier in respect of each site, which are all currently vacant. For the purposes of enabling the Council to make efficient use of existing commissioning models in respect of the provision of care services to vulnerable older persons and to align the care provided to the occupants of the extra care housing with that provided more widely, the Council shall be procuring the care service separately to this tender. In accordance with the Council's strategic requirements pertaining to the extra care housing provision, the Council requires that the tenure at the schemes shall be a 100% affordable model. To meet the Council's definition of affordability, rents and service charges must be set at levels agreed with the strategic housing authority. To meet the Council's strategic priorities, the Council shall require 100% nomination rights to the extra care housing provision, with tenancies being offered only to those persons that shall meet the Council's eligibility criteria. The Procurement is being undertaken in accordance with the Competitive Procedure with Negotiation pursuant to regulation 29 of the Regulations. Although the Council is utilising the Competitive Procedure with Negotiation our ambition is to undertake a procurement which is not overly burdensome and facilitates enough interaction with bidders to arrive at the right decision. This is why we have opted to utilise the competitive procedure with negotiation -- a process which enables us to interact with shortlisted bidders and provides bidders with a reciprocal opportunity to explore potential solutions with us and obtain detailed feedback on their proposals. Additional information: The Council has a further requirement to deliver 150 to 200 units, which may be added to this award at a later date should the Council wish to do so, which will be subject to a formal Council decision. This further requirement would be subject to the same financial evaluation model as set out in the procurement documents and subject to the same terms and conditions.
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