Purpose

This report covers two separate decision points in relation to the procurement and appointment of a contractor to carry out refurbishment works required for the External Cyclical and Redecoration Works for Council Housing residential property known as Kensal House - Tranche 2, Lot 22 in Table 1.

The two decisions are:

1. Procurement Strategy – The decision to commence the procurement activity which will allow the tender documents to be published.

2. Contract Award – The decision to award and sign the contract.

Table 1 – Property Details

Estate

Block Number

Postcode

Ward

Kensal House

1-7

W10 5BQ

Dalgarno

Kensal House

8-48

W10 5BQ

Dalgarno

Kensal House

49-68

W10 5BQ

Dalgarno

Decision

The Lead Member has AGREED to:

1. Approve the award of the call-off contract for the provision of Council Homes External Cyclical and Decoration Works at Kensal House to Mulalley and Company Limited (Company No. 1534913), in the sum of £5,108,939.55 (Five Million, One-Hundred and Eight Thousand, Nine-Hundred and Thirty-Nine Pounds and Fifty-Five Pence), exclusive of VAT, (£6,130,727.46 inclusive of VAT) for a contract period of 65 weeks.
2. Approve, following consultation with the Executive Director of Environment and Neighbourhoods the endorsement of a waiver to depart from the Council’s Contract Regulations, as prior approval was not sought for the changed procurement strategy to undertake the new tender exercise with the revised budget allowance, under Lot 4 of the Project Union Framework as per the Table 2 Waiver Requirements of the Part 8, Section 5 Council Contract Regulations.
3. Approve the establishment of a project contingency sum, as outlined in exempt Appendix 1, that may be required for additional works that may become necessary and which are in scope of the contract’s variation provisions or other unanticipated costs, with spend against the contingency to be approved by officers within the delegations set out in Housing Management’s Scheme of Delegation.
4. Delegate authority to the Director of Housing Management to approve under Contract Regulations any variations to the contract that are out of scope of the contract’s variation provisions. (refer to section 8.7)
5. Delegate Authority to the Executive Director of Environment and Neighbourhoods to approve additional project costs in any instances of unforeseen works or services that result in costs over and above the contract award sum and the project contingency sum.  In such cases, a Delegated Authority Decision (DAD) report will be prepared for approval by the Director of Housing Management with legal and financial implications.