Purpose

Background

Officer Scheme of Delegation:
On 7 May 2025, the Council’s Executive agreed to progress the Horley Community Centre Modernisation Project. A delegated decision was given to the Head of Community Partnerships in consultation with the Portfolio Holder for Community Partnerships, the Portfolio Holder for Finance, Assets and Governance and the Chief Finance Officer, to be authorised to “agree the procurement strategy for the project, undertaking the necessary consultancy, surveyor, and contractor appointments (including main contractor, inspectoral bodies or warranty providers) and to enter into contracts to allow the project to be delivered”. -

Consultation
The Executive delegation requires consultation with the Portfolio Holders for Community Partnerships and Finance, Assets and Governance. They were duly consulted on the proposed procurement strategy across a series of meetings which concluded on 28/07/2026. The recommendations made at this meeting, were endorsed by the Portfolio Holders. A copy of the Part B exempt presentation given, is attached.
The Director of Finance (S151), Lisa Nyon, confirmed her agreement on 19 August 2026.

Reasons for Decision

Explain the reason(s) for the decision.

In August 2025, members agreed a procurement strategy for the Horley Community Centre modernisation project to procure the main contractor via a via a two-stage design and build process, entering into a Pre-Construction Services Agreement (PCSA) first, prior to entering into the construction contract. However, the Council has identified that following the appointment of a main contractor under a PCSA and subsequent termination, that this is not the most effective route to achieve value for money for a works contract of this nature.
The new strategy to procure a main contractor via a single stage procurement route is intended to:
• Budget: Secure a tendered price within the approved budget envelope; there remains a risk that tenders could come in higher than the budget envelope, however with the technical design (RIBA stage 4) completed and a RIBA stage 3 cost plan demonstrating that the core works can be delivered within budget, there is increased cost certainty.
• Process: Maximise value for money through a competitive procurement process (prequalification and ITT) with an increased market/contractor pool attracting smaller, more agile contractors with lower overheads and more competitive pricing.
• Quality and community value: Deliver the project scope and building improvements that maximise community benefit while remaining within the approved budget envelope.
• Timeline: Enables the Council to reprocure and start on site before the end of the financial year subject to commencing prequalification process in August and robust programme management of the procurement process, appointment and timeline.
The principal of a re-procurement was agreed at the Member Oversight Group (MOG) meeting on 30 June 2026 and subsequently with the Portfolio Holders for Community Development and Prosperity and Finance and Assets. This is the preferred approach following the termination of the PCSA with the previously appointed contractor.
The milestones for the procurement and main works are:
• Procurement of main contractor: Autumn - Winter 2026
• Appointment of main contractor: early 2027
• Contractor mobilisation and Construction commences: early 2027

Decision

It is proposed that the project proceeds with a revised procurement strategy to appoint a main contractor through a single-stage Design and Build (D&B) procurement route using a Competitive Flexible Procedure: Conditions of Participation with ability to shortlist (prequalification and Invitation To Tender (ITT)).

Alternative options considered

1. Complete current design stage and pause project to bring forward later: The project does not proceed, and no further design development or refurbishment works are undertaken at this time. The completed designs will then be available to be brought forward and delivered when funding is available. This option is not recommended due to the reputational risks associated with not delivering physical improvements to the Centre, and the building continues to deteriorate requiring ongoing maintenance. There is also a risk that the Community Infrastructure Levy allocated to the project is lost.
2. Works are paired back to within the budget envelope and progress with PCSA contractor: This is no longer an option as the PCSA has terminated. Further rationalisation of the project would lead to the Council not being able to meet the project aspirations or scope agreed at Executive.