Two more bidders walk away from English Partnerships carbon project

Two more bidders have joined Barratt in walking away from English Partnerships' (EP) flagship carbon challenge project at Peterborough because the job is too expensive.

Social housing provider Cross Key Homes and contractor Galliford Try, and One Peterborough – a joint venture between Crest Nicholson, developer Bioregional Quintain and housing association Minister – have quit what was a six-strong shortlist for the pioneering green scheme.

The development is the second EP carbon challenge scheme and involves building 450 homes on a 7ha site owned by the Eastern England Development Agency and Peterborough City Council.

All the homes must be built to code level six – the highest standard of sustainable housing, which is rarely achieved – and EP originally asked six groups to submit detailed bids by next month.

In a statement, Crest said: “After careful consideration of the Peterborough Carbon Challenge Brief, One Peterborough felt unable to deliver in accordance with the objectives of the scheme while maintaining an acceptable commercial position and have withdrawn from the competition.”

A source close to the deal said: “Crest and Bioregional Quintain pulled out on the basis that EP was looking for them to treat the project on a research and development basis, which would imply that EP was requiring the companies to put their hands in their pockets.

“EP wants to have its cake and eat it and is expecting Peterborough to be another exemplar, but the scheme has other expensive challenges such as cleaning up the site.”

EP wants a preferred bidder by this summer. But putting significant resources into the Peterborough deal – or any other EP carbon challenge proposals – could be hard to justify for housebuilders faced with a weakening market.

Barratt, which is preferred bidder on EP’s other carbon challenge scheme at Hanham Hall in Bristol, walked away from the Peterborough deal citing the ‘resources’ needed.

Jayne Lomas, EP’s project manager for the Carbon Challenge, said: “The Competitive Dialogue brings greater focus and quality to the bidding process.”