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Construction Contract Leads

Scope

Reference

UN23199

Description

Hampshire’s older persons’ population is projected to increase by 56% between 2020 and 2035, from 153,000 to 239,000. Within Havant, the numbers are forecast to increase by 53% during the same period, with the over-75 population increasing from 15,000 to 23,000.

Havant is one of the few remaining Hampshire boroughs without provision for older people’s Extra Care Housing and is identified as a priority area in the Extra Care Older Adults’ Brochure 2023.1. The Havant borough area also has the second highest number of residents referred to Residential Care homes across Hampshire, with the County Council purchasing circa 150 new placements per year in Havant. It is predicted that the delivery and build of an affordable Extra Care Housing scheme will divert many residents from high-cost Residential Care placements into Extra Care Housing.

In January 2024, the Council commissioned an independent organisation to understand the demand for affordable Extra Care Housing across Hampshire over the next 20 years. This analysis indicates that 154 units of affordable Extra Care Housing will be required in the Havant Borough area over this period.

The above-mentioned population increase will continue to build further pressure on existing provision as the increasing needs and demands on services for older people continue to rise.

The proposal is to procure a provider to design, build, and operate a circa 70-bed Extra Care facility on the Dunsbury Way site in Havant. The provider will be responsible for the operation of the facility, including the rental and maintenance of the building. To support the scheme's sustainability and accessibility, and to support the provider's ability to secure additional funding, Hampshire County Council will be offering a void guarantee as part of this procurement.

The site will be leased to the provider on a 250-year lease, with an approximated value of £1,100,000. The provider will be responsible for developing the design, obtaining planning permission, and letting the units at an affordable rent within Hampshire’s Extra Care letting arrangements. The successful service provider will be required to operate the scheme for a minimum of 20 years, after which they will be able to sell the scheme for continued operation as an Extra Care Housing site.

The provider or consortium will need to include a Registered Housing Provider.

As Hampshire County Council requires the units to be let at Affordable Rent tenure only, as defined in the National Planning Policy Framework, the Provider will need to secure both Homes England funding and its own capital contribution to develop and deliver the scheme.

The maximum contract value of £2,971,233 includes the land at Dunsbury Way in Havant, which has an estimated value of £1,100,000 on a 250-year lease at a peppercorn rent, and a maximum value of £1,871,233 over the initial 20 years from the site becoming operational.

Total value (estimated)

• £2,971,233 excluding VAT
• £3,565,479.60 including VAT

Above the relevant threshold

Contract dates (estimated)

• 1 February 2028 to 31 January 2048
• 20 years

Main procurement category

Services

CPV classifications

• 70333000 - Housing services
• 70210000 - Residential property renting or leasing services
• 45215210 - ÂÜÀòÔ­´´ work for subsidised residential accommodation

Contract locations

• UKJ35 - South Hampshire

Participation

Legal and financial capacity conditions of participation

This tender has the following Conditions of Participation. Further supplementary information on each of the requirements is contained within the tender documents.

• Corporate Social Responsibility – Suppliers are asked to confirm they meet their legal obligations and expectations of the Council regarding their approach to these matters.
• Data Protection & ICO Registration – Suppliers are required to meet stated Data Protection standards and be registered with the Information Commissioners Office.
• Insurance – As a minimum, suppliers are required to hold, or commit to obtain prior to contract award, Public and Employer's Liability insurance. Minimum cover levels for these and any other additional insurance requirements relevant to this requirement, are detailed in the tender documents.
• Financial Standing & Business Risk – The Council uses Creditsafe and requires all suppliers to achieve a minimum Business Risk score of 30/100. For scores between 30 and 50, a Parent Company Guarantee or Performance Bond may be deemed required as appropriate. Suppliers must also be able to evidence at least 12 months of trading.
• Suppliers are asked to confirm they are Registered Providers for Social Housing with the Regulator of Social Housing.

Technical ability conditions of participation

This tender has the following Conditions of Participation. Further supplementary information on each of the requirements is contained within the tender documents.

• Suppliers are asked to provide two examples of similar projects delivered within the last five years.
• Suppliers are asked to confirm that they can meet all requirements set out in Hampshire County Council’s Extra Care Housing Design Standards.
• Suppliers are asked to confirm that they can meet the required timescales for construction to commence on site.
• Suppliers are asked to confirm that they will comply with Hampshire County Council’s Operational Policy for the Delivery of Extra Care Housing.
• Suppliers are asked to confirm that they have appropriate arrangements in place to effectively manage health and safety and control significant risks.

Submission

Enquiry deadline

14 September 2026, 5:00pm

Tender submission deadline

25 September 2026, 2:00pm

Submission address and any special instructions

Tenders may be submitted electronically

Yes

Languages that may be used for submission

English

Award decision date (estimated)

28 October 2026

Award criteria

Other information

Payment terms

Following agreement of the Half Yearly Void Payment Statement, the Authority shall pay the Provider the applicable Half Yearly Void Payments within 30 days of receipt of a valid invoice.

Description of risks to contract performance

Planning Issues

There is a risk to contract performance due to the requirement for the provider to obtain planning permission. The provider may be unable to obtain planning approval or may require amendments to the design to obtain planning permission.

Local Government Reorganisation

Local Government Reorganisation (LGR) is part of the Government plans to replace the current two-tier system of county councils and district/borough councils with unitary councils across the country. The County of Hampshire is impacted by this and is currently progressing through the LGR process. During the term of this contract the LGR process will progress and will impact this contract. Impacts may include, but are not limited to, contract changes such as a change to the legal name/entity of the Contracting Authority.

Conflicts assessment prepared/revised

Yes

Procedure

Procedure type

Open procedure

Contracting authority

Hampshire County Council

• Public Procurement Organisation Number: PBHM-7586-PWLP

High St, The Castle

Winchester

SO23 8UJ

United Kingdom

Email: strategic.procurement [at] hants.gov.uk

Website:

Region: UKJ36 - Central Hampshire

Organisation type: Public authority - sub-central government