Regeneration in Clacton-on-Sea
The Carnarvon Terrace scheme is the most significant TDC-led scheme within wider regeneration investment across Clacton-on-Sea, supported by the Local Regeneration Fund, Pride in Place and Community Regeneration Partnership. Together, the programmes are working to deliver greater social wellbeing for residents, a healthier and more sustainable economy, with an enhanced and more diverse town centre offer, driving growth within Clacton to catalyse private sector investment.
In Clacton-on-Sea, working alongside Essex County Council, Carnarvon Road will see £30.35m investment transforming the existing library and town centre car park into a new Civic Quarter, with:
•new affordable homes will be provided on a currently derelict site in a sought-after location in Tendring;
•the existing 300-space car parking provision rationalised into a modern multi storey structure, opening up this key site for improved landscaping and public spaces and commercial spaces for civic use. Provisions of electric charging spaces will future proof residents' transport offer while meeting needs of residents;
•a community hub including a new library, adult community learning space for upskilling residents and space for public sector partners, community space for upskilling residents, and commercial space for public sector partners in a convenient location.
Progress update
A summary of progress made to date, including design, planning and procurement milestones and recent updates following the March 2026 Cabinet report, is as follows:
•Completed RIBA Stage 3 design and secured planning permission (Feb–Apr 2025);
•Undertaken an initial tender exercise, which did not deliver a viable outcome;
•Reviewed procurement strategy, retaining a two-stage approach, enabling early contractor involvement to improve cost certainty and deliverability, and adopted an Open Tender route to market to boost competition, as referenced in the March Cabinet Report;
•Completed amendments to the scheme to seek simplification and savings whilst retaining the overall design concept and layout of the schemes (February – March 2026);
•Undertaken a second procurement exercise (April–June 2026), receiving strong market interest (10 submissions, 8 compliant);
•Project funding is confirmed within the Council’s Capital Programme within April 2026 Cabinet Report;
•Completed evaluation and identified a preferred contractor; and
•Cabinet has approved in principle that the future management of the housing will be 100% affordable; a future report will be brought to Cabinet setting out the business case for this approach.
Legal basis for the decision
The procurement has been undertaken in full compliance with the Council’s Procurement Procedure Rules and Procurement Act 2023.
A two-stage tender process that was adopted simply means the contractor can be engaged at an early stage for the purposes of completion of design and other ancillary services.
The report is therefore, seeking authority to award preconstruction services contract.
The resultant contract will be sealed.
During the preconstruction services phase, a programme for demolition or enabling works can be submitted by the contractor and only if the Council is satisfied, can a decision to award a contract those works be made. Such a decision will require a further report.
Also, during the preconstruction services phases, the contractor will work with the Council’s consultant on the final contract sum.
Where a contract sum is submitted to the Council by the contractor, a decision to award such contract, will be subject to further reports and decision.
It is worth noting that the Council is not bound by the award of this preconstruction services contract, to award any works contract.
A suite of contract documents has been prepared for use during the preconstruction and main works phases.
Next steps
This contract is limited to the PCSA services and does not include demolition works. As with the Homes for Dovercourt scheme, the PCSA stage provides a defined period to work collaboratively with the appointed contractor and wider supply chain to refine the design, test buildability and progress value engineering, with the aim of reducing costs and securing a deliverable scheme within the available funding envelope. This stage will enable proactive risk management with the appointed contractor to improve cost certainty.
The tender report identifies a Preferred Bidder and provides:
•A fixed cost of the PCSA stage of £199,184.60;
•An estimate of the Demolition works cost
•An estimate of the main works cost which will be refined during the PCSA period;
•An estimate of value engineering opportunities on the scheme, of £215,000 with further savings possible if the sustainability performance of the design is compromised;
•A programme for completion of the works, with enabling works commencing on site autumn 2026 including demolition of the car park within the PCSA period, and agreement of the main build contract sum in Q4 2026/7.
The tender for the main works contract delivers an estimated £8.84m in Social Value, including £8.7m spend in local supply chains, £24,000 spend in reduction of waste through reuse of products and materials, and £10,000 for in-kind contributions to local community projects.
The price submitted for the tender return is within the budget of £18,769,810 allocated to this project in the General Fund Capital Programme. However, the current estimated main build cost is currently viewed to allow an insufficient sum for contingency, at around 3%. Based on best practice and lessons learned from past projects by the authority, a higher contingency sum is sought. Value engineering with the contractor during the PCSA stage will work to achieve this, through refining the design and testing buildability, with the aim of reducing costs and securing a deliverable scheme within the available funding envelope.
The programme submitted by the contractor sets out an ambitious timeline for completion of the works in line with the Council’s aspirations and funding envelope with the following key dates:
w/c 20/07/2026: PCSA contract signed
w/c 07/12/2026: Construction commencement
w/c 31/04/2028: Car park structure completed
w/c 08/08/2028: Construction completion
The programme will be subject to detailed review with the contractor during the PCSA stage, with opportunities sought to bring forward the completion of the car park and public realm, in conjunction with liaison with MHCLG as the funder.
Due to programme pressures to have the new car park and residential block completed within the funding envelope by March 2028, the preferred contractor’s current programme indicates a need for the demolition of the car park to take place in tandem with the PCSA exercise. This timeline will be reviewed with the contractor and will require a separate decision to be made.
Management of the assets
The site is currently held within the General Fund. In March 2026 Cabinet set out an underlying policy direction and ‘in principle’ approach for the housing element at Carnarvon Terrace to be 100% and managed directly by the Council. This is subject to a future full report to Cabinet, planned for the milestone of agreeing the final contract sum in Q4 26/7, which will address considerations of appropriate into the Housing Revenue Account.
Baily Garner, the Employer's Agent and project’s Quantity Surveyor has provided a Tender Report on 10/07/2026, with detailed information about the project and the tender process, with the basis for recommendation of the preferred contractor.