Purpose

Enabling Works Design and Build contract award
and Main Works Design and Build contract award for the Kings Hall
Leisure Centre Refurbishment Project

Content

RESOLVED:
 
That, subject to
approval by Cabinet of the revised project budget on 24 November
2025, Cabinet Procurement and Insourcing Committee (CPIC) is
recommended to:
 
1. 
Note the completion of Stage 2 of a 2-stage procurement
in relation to the selection of a Design and Build contractor for
Kings Hall Leisure Centre Refurbishment Project.
2. 
Approve the award of a JCT Design and Build Enabling
Works contract to Morgan Sindall for a maximum Contract Sum of
£1,877,048.99 exclusive of VAT.
3. 
Approve the award of a JCT Design and Build Main Works
contract to Morgan Sindall for a maximum Contract Sum of
£70,939,423 exclusive of VAT.
4. 
Authorise the Director of Legal, Democratic and
Electoral Services to agree and enter into all necessary legal and
ancillary documentation relating to the Design and Build contracts
for Kings Hall Leisure Centre Refurbishment Project, including all
necessary consents required to enable the works. 
 
Reasons For Decision 
 
CPIC endorsed the business case to commence
the first stage of a two stage procurement process for a design and
build contractor for the Kings Hall Leisure Centre refurbishment
project on 4 September 2023 (FRC S244).
 
Morgan Sindall Construction and Infrastructure
Limited were then awarded a Pre-Construction Services Agreement
following the completion of this stage 1 procurement, as set out in
a delegated powers report approved by the Group Director, Finance
(Kings Hall Leisure Centre (KHLC) Refurbishment Project: Pre
Construction Services (PCSA) Contract Award dated 22 January
2024).
 
The Council has been working with Morgan
Sindall Construction and Infrastructure Limited under that PCSA
award, to complete the second stage of the procurement process.
This has involved the development of designs for planning and
market tender purposes.The project has now secured Full
Planning and Listed Building Consent, and a guaranteed maximum
price for the contract has been submitted and agreed with the
Council’s professional team. This report sets out the process
which has been undertaken, in line with the protocols set out in
the Southern Construction Framework, and recommends concluding this
procurement exercise through the award of two contracts.
 
In order to proceed in the most efficient
manner on site (mitigating cost risk to the council), it is being
recommended to enter into an Enabling Works contract for the
removal of asbestos in the existing building, while the Main Works
contract proceeds to contract execution. This allows the early
mobilisation and commencement of these works, which are required to
progress in part before the main works can commence. This report
sets out the commercial position relating to these contracts, and
confirms that these will be subsumed into the overall contract sum
and risk profile of the main contract.
 
Alternative Options
Considered and Rejected
 
The options open to the Council at this point
of the procurement which were considered and rejected are as
follows:
 
1. Seek an alternative contractor to deliver
the works. In a two stage procurement, the procuring Authority
works with a PCSA contractor to develop, tender, and secure a price
to deliver the works. On the basis that this has been carried out
on this procurement, and that the professional team have been
satisfied with the procurement protocols, and recommended a
Contract Sum, then the current contractor is appointable. This is
subject to the Contract Sum being within the affordability envelope
set out and approved by Cabinet.
 
2.  Do not enter
into an Enabling Works prior to entering into the Main Contract. In
this scenario, the Council would not enter into an Enabling Works
contract and would instead wait and include the asbestos removal
works in the main contract. As a signed contract is required in
order to formally mobilise to start the works, this option would
delay a start on site. This delay would incur inflation and
prolongation costs, which are currently held by the supply chain in
line with the current programme assumptions. A concurrent CPIC
contract award for the Enabling Works and the Main Works gives
certainty and sufficient cover to commence the mobilisation and
commencement of the Enabling Works. These Works are required to be
progressed by circa 4 weeks before the Main Works can commence.