Purpose

On 19 June 2025 the Executive considered a report on 5 Options to address the
Reinforced Aerated Autoclaved Concrete (RAAC) in the Harlequin and to undertake other
essential works to bring the Harlequin back into operation and approved:

• Option 2: Proceed with RAAC removal and all essential works to allow reopening
of theatre at previous capacity, without bringing forward the planned maintenance
programme or wider modernisation. (Recommended)

The Executive also delegated to the Head of Property Services, in consultation with the
Deputy Chief Executive, Chief Finance Officer and the Portfolio Holder for Finance,
Assets and Governance, to procure and enter into a works contract to implement option 2.

Since such time, following a compliant procurement process via a public sector
framework, The Bailey Partnership have been appointed as the Client Design Team to
support officers and bring forward the design for the project and seek to appoint a main
contractor to deliver the project under a ‘Design & Build’ contract (the ‘Main Contract’).
These services include providing guidance on potential routes to market and the
development of a procurement strategy and subsequent management of the procurement
process of the works contract.

Following a meeting between officers and representatives from the Client Design Team
met with the Leader, the Portfolio Holder for Finance and Assets, and the Portfolio Holder
for Leisure and Culture, Members requested that officers in conjunction with the Client
Design Team, work to identify measures that would shorten the indicative contract
programme timeline, to facilitate the earlier reopening of the Theatre.

During these discussions, one potential option proposed by the Client Design Team was
that the Authority could undertake a direct award for a Pre-Construction Services
Agreement (PCSA) utilising a public sector framework in order to expedite their initial
indicative programme by approximately seven weeks, aligning with political direction to
seek to accelerate the reopening of the Harlequin Theatre.

A subsequent meeting was held with the Council’s Procurement Team, who supported
this approach in order to provide a programme improvement and it was agreed that the
Bailey Partnership would recommend a contractor and framework through which to place
the direct award (subject to ensuring compliance with the public procurement regulations
e.g. Public Contract Regulation 2015 and Procurement Act 2023).

The Bailey Partnership were duly instructed to review available procurement frameworks
and undertake early market engagement with potential contractors, including those with
whom they had previous prior professional experience of and who they felt would be able
to undertake a project of this nature.

Procurement Route Assessment

The Bailey Partnership initially considered three contractors that were believed to be
appropriate for the works based on knowledge of these contractors and their experience
as detailed within Annex 1 (commercially confidential – exempt papers).
The Frameworks that were identified as suitable were as follows:
• Procure Partnerships - Southeast Construction Framework (Lot 1 - £5m)
• London Construction Programme (LCP) Framework - Major Works 2025 (MW25)
Lot GR: Refurbishment, Retrofit, Adaptations and Remediations (GR1 up to £7.5m)
• London Construction Programme (LPC) Dynamic Purchasing System (DPS) for
Minor Works.
• Procure Partnerships - Southeast Construction Framework (Lot 1 - £5m) is
available and not due to expire until 17th November 2027.
• Fusion 21 Refurbishment, Construction, New Build and Modular Buildings
Framework - Lot 1 External and Internal Refurbishment (Lot 1D – Wider Public
Sector £2m+)

These frameworks were considered suitable on the basis that they have a lot suited to
refurbishment of local authority/public sector buildings, with value bands that suit the
project budget, and included one or more of the potential contractors identified by the
Bailey Partnership.

Framework and Contractor Shortlisting

Preferred Frameworks

Bailey Partnership undertook a structured review of available frameworks and held
discussions with potential contractors capable of delivering the Reinforced Aerated
Autoclaved Concrete (RAAC) removal and essential works.

The contractors being considered for these works, referenced in commercially sensitive
Annex 1 (exempt papers), featured as one of the Framework Providers on one or more of
the respective frameworks as set out below. This list includes the considered frameworks
and a brief overview of their suitability:

- Procure Partnerships - Southeast Construction Framework (Lot 1 - £5m) is
available and not due to expire until 17th November 2027.

- London Construction Programme (LCP) Dynamic Purchasing System (DPS) for
Minor Works (DPS hosted by Haringey Council) is available and not due to expire
until February 2028. In addition, this enables potential new Contractors to be
added subject to the agreement being satisfied that the Supplier fulfils the
assessment criteria, similar to standard Selection Questionnaire in accordance with
Public Regulations 2015. However, this Dynamic Purchasing System (DPS)
agreement does not include an available option for permitted direct award
approach. A competitive exercise is required therefore, based on the Bailey
Partnership’s advised route to market, this option is not suitable.

- London Construction Programme (LCP) Major Works Framework – Currently in the
process of a major refresh following the expiration of the previous Major Works
framework (MW19) in late 2024, therefore this framework is not yet live.

- Fusion 21 Refurbishment, Construction, New Build and Modular Buildings
Framework - Lot 1 External and Internal Refurbishment 1 Refurbishment,
Construction, Modular and New Build (Lot 1D – Wider Public Sector) is available
and not due to expire until 22nd May 2027.

Procure Partnerships - Southeast Construction Framework

The Bailey Partnership reported positive previous experience of using Procure
Partnerships Framework having been used successfully, however was considered to
be less flexible than that of Fusion 21.

In addition, their previous experience with Fusion 21 that they are more transparent
about the fees so that clients know what they are paying, as such they are more
flexible with negotiating the fee and will be willing to fix the fee to give cost certainty.

The current banding of Lots on the Procure Partnerships Framework are £1-5m or £5
15m and should there be subsequent additions to the scope of works taking the
contract value above £5m, there would be a bigger risk of challenge. Whereas the
Fusion 21 Framework Lot with the value band of £2m+ has no upper limit to contract
value and as such, any increase in project cost will not affect the reported awarded
value band.

Fusion 21 Refurbishment, Construction, New Build and Modular Buildings
Framework (Lot 1D):

The framework was established by Fusion 21 for public sector organisations to use, to
carry out mini-competition or permitted direct award subject to fulfilling the framework’s

instructions and guidance. This framework was subject to the Public Contract
Regulations 2015 and remains valid for local authorities and other public sector
organisations to adopt.

The procurement for this framework was based on 60% Quality and 40% Price
Weighting and as part of the original procurement exercise, all Tenderers were
required to submit their tender price based upon a Prime Cost uplift percentages
against both Pre-Construction Works and a range of National Schedule of Rates
against Building Fabric, Electrical, Mechanical, Preliminaries and Overheads & Profit
during the Construction Phase and Daywork Rates. In addition, quality submissions to
be evaluated in accordance the technical and commercial evidence basis under
specific sub-weightings, detailed within Annex 1 of this Decision (exempt papers).
In order to ensure that value for money is achieved, we are able to request that Fusion
21 undertake an assessment of the submitted price and provide a value for money
statement based upon the framework. In addition, we can also request that Bailey
Partnership’s Cost Consultant, who forms part of the Client Design Team, undertake a
benchmarking exercise against similar projects.

Following assessment of the aforementioned frameworks, Bailey Partnership advised
of positive previous experience operating with the Fusion 21 Framework, noting the
speed of service, flexibility and opportunity to fix a one-off framework fee across the
whole of the project for cost certainty.

Bailey Partnership also noted positive experience with Procure Partnerships, although
believed that the fee structure charged for the use of this Framework may be more
rigid and be based upon the final contract sum, along with wishing to be able to
assess the capability of more than one of the contractors.

Also, having identified the options noted above, members of the Bailey Partnership
team duly discussed the Framework suggestions with Reigate and Banstead’s
Procurement and Project Teams, whom all agreed with the Bailey Partnership’s
recommendation that the Fusion 21 Framework would be the better option, on the
basis that there are two of the contractors that The Bailey Partnership had considered
and that were believed to be appropriate for the works based on their knowledge of
these contractors and previous experience, available to select from and that the
flexibility of the framework would ensure a smooth appointment of the chosen
contractor subject to ensuring compliance with the Framework instructions and
guidance.

Contract Stages

Pre-Construction Services Agreement (PCSA)

Initially, it is intended to enter into a fixed price Pre-Construction Services Agreement
(PCSA), which allows the Client to formally appoint a contractor to carry out early
stage tasks such as design input, buildability reviews and planning support before the
contractor submits their tender based on the final agreed design/specification and the
main construction contract is signed1.

Pre-Construction Services Agreements are useful for complex or high-value projects
where early contractor involvement can help reduce delays, flag risks and improve
cost certainty.

A Pre-Construction Services Agreement is a contractual agreement that outlines the
services that will be provided by the contractor before the construction phase of the
project begins and is a distinct, stand-alone agreement from the construction contract.

The Pre-Construction Service Agreement makes it clear that there is no guarantee
that the contractor undertaking the pre-construction service agreement work will be
appointed as the main contractor for the final Building Contract. Although, in most
circumstances the appointed contractor is employed for both stages, having
developed a working relationship during the pre-construction phase.

Main Building Contract

It is then intended to enter into a Design and Build (D&B) main building contract
following the completion of RIBA Stage 4 (Technical Design) which finalises the
detailed architectural, engineering, and building system designs, producing the
comprehensive, coordinated documentation necessary for building regulation approval
and construction tender costing. A further delegated decision will need to be taken in
due course for the award of main building works contract.

This arrangement is a procurement method where a single contractor is responsible
for both the ongoing design and construction of a project, providing a single point of
responsibility.

Contractor Selection

It was agreed that Fusion 21 should be approached to confirm the process for a direct
award through their Wider Public Sector (Southeast Region), value band £2m+.

Bailey Partnership arranged a discussion with Fusion 21 to discuss the proposed
direct award of two potential Framework Providers.

Fusion 21 confirmed that the framework allows for direct award with negotiation
subject to meeting the framework criteria (Call-Off without competition) as set out
below:

Call-Off without Competition: Criteria

A Local Authority/Fusion21 may instruct provision of services and/or the carrying out
of works without reopening competition by applying the terms of the call-off contract,
the supplier's prices contained in its pricing schedule(s), the brief/specification (as may
be tailored more particularly to the requirements for the call-off contract to be used) to
select a supplier having regard to one or more of the following:

• The authority’s requirements and business needs by reference to the
brief/specification for the provision of services and/or carrying out works;
and/or
• Where the member can evidence value for money based on a total cost of
ownership approach; and/or
• Where relevant to the ranking of the supplier in the procurement exercise the
subject matter of the invitation to tender; and/or
• The geographical location in which those works and services are to be
performed; and/or
• The number of call-off contracts currently awarded and to which organisation;
and/or
• The performance of the supplier under any call-off contracts previously or
currently awarded to it.

It was explained that the Fusion 21 framework has a provision for direct award of any
ranked contractor, on the basis of proximity, speed of mobilisation, availability,
capability and previous experience relevant to the project in question and that the
adoption of JCT Pre-Construction Services Agreement (PCSA) Form of Contract is
permitted.

Bailey Partnership explained the nature of the project, its complexity and the need to
work with a trusted partner to deliver the works. It was further explained that the 2
shortlisted Framework Providers had been selected initially due to their performance
on other projects with the Bailey Partnership, which had demonstrated the
collaborative approach required for a project such as the Harlequin project.

The Bailey Partnership advised that their direct experience of the five higher ranking
Framework Providers under this framework was either on projects not comparable to
the Harlequin Theatre works or not recent enough to provide assurance of a robust
appointment.

Based on meeting the call-off without-competition criteria, it was deemed that due to
the Council’s requirements and business needs by reference to the specification for
the provision of services and works, the Fusion 21 team confirmed that this was an
acceptable reason for selecting the two Framework Providers, subject to a capability
assessment, which would review both Framework Provider’s relevant experience in
carrying out works of this nature.

Capability Assessment

Relevant Previous Experience

Bailey Partnership undertook a capability assessment of the two shortlisted
Framework Providers, reviewing evidence of previous experience requesting that they
provide evidence of any previous projects that include the following:

• Large commercial roof replacement, including structural deck replacement (i.e.
not simply replacement coverings)
• Works undertaken in constrained sites with limited site compound, or high
street location.
• Works including the replacement of commercial mechanical plant and/or
systems.

Both Framework Providers responded and both the Bailey Partnership’s assessment
and the contractor’s submitted material is appended to this report as a commercially
confidential Appendices A-D.

In addition, an invitation to submit a Fee that will be applied to the Pre-Construction
Services Agreement was requested based upon their submitted rates to the
Framework, along with responses to a number of additional quality questions.

In addition, a further evaluation will be undertaken following completion of RIBA Stage
4, as part of being invited to submit their priced tender for the final proposed scope of
works, prior to award of the main contract.

Detailed Consultation with Legal & Procurement

Legal and Procurement input was sought based on the Bailey Partnership’s
recommended route to market. Their due diligence and input were required to ensure
the justification for direct award adheres to the call-off without competition criteria as
set out via the framework instructions and guidance, and the procurement to remain
compliant with the public procurement regulations.

In accordance with the LGA Transparency Code, the Council’s procurement and
contract procedural rules, and the Public Contracts Regulations 2015 following award
of the PCSA and main works contract, this would be published via the Council’s
contract register and Contract Details notice.

Consultation with Framework Provider

Bailey Partnership have subsequently submitted their Report & Recommendations to
Fusion 21 setting out their reasoning for the selection of Fusion 21’s Framework and
their contractor recommendation.

Following a review, Fusion 21’s Senior Project Manager confirmed that they, as
Framework Managers, were comfortable with the rationale to proceed with a direct
award to the recommended contractor, namely Apex Contractors Limited, detailed
within the attached Fusion 21 Call-Off Report (Appendix D).

Footnote - 1 The PCSA will also planned maintenance costs relating to Cyclical Improvement and Enhancements
which need to be delivered at the same time as the RAAC works, to support the successful appointment
of a third party operator for the Harlequin, by ensuring the compliance and operational functionality of the
building. These planned maintenance works are separately funded through the approved capital
programme.

Declarations of Interest

None

Consultation
The decision requires consultation with the Portfolio Holder for Finance and Assets, the
Deputy Chief Executive, and the Chief Finance Officer, all of whom have been duly
consulted and have fully endorsed this decision.

Reasons for Decision

1. Bailey Partnership believe Apex Contractors Limited to be appropriate for the
works based on knowledge of these contractors and their experience.
2. Apex Contractors Limited are the higher ranked of the two Framework Providers
considered under the Fusion 21 Framework.
3. To ensure the current contract delivery programme can be accelerated in support
of Members’ aspirations for the reopening the Harlequin Theatre.
4. Fusion 21 Framework Manager is comfortable with the rationale to proceed with
a direct award to Apex Contractors Limited.

Decision

1. To approve proceeding with a direct award of a fixed fee PCSA to Apex
   Contractors Limited the preferred main contractor identified through the Fusion
   21 framework, in order to expedite the programme for reopening the Harlequin
   Theatre.
   

Alternative options considered

1. Undertake a further competition under the framework. This would extend the
contract selection period by an estimated 6–8 weeks, delaying commencement
of works, increasing programme risk, and impacting the operator mobilisation
timeline. (Not recommended).

2. Appoint an alternate contractor under the Fusion 21 Framework.
(Not recommended).

3. Appoint a contractor under an alternate Framework. (Not recommended).

4. Do nothing.