Purpose

Approval of Contract Award for
a Contractor for Small Scale Capital Works to support delivery of
the Council’s 6 Priority Flood Alleviation Scheme projects,
as a call off via the YORhub
framework.
 
The contract would be managed
in 2 Stages:
•      
Stage 1 – pre-construction advice, delivered
via a NEC3 Professional Services Contract (PSC)
•      
Stage 2 – construction work, delivered via
NEC3 Construction Contract(s)
 
One set of terms and conditions
will be required for the entirety of the Stage 1 work.
 
The Stage 2 work will be
negotiated as part of the Stage 1 work, and this is expected to
require more than one NEC3 Construction Contract. The number of
contracts required will depend on the nature and locations of the
construction works.
                                         
The Award Value is £4m
(excluding VAT).
 
The contract is intended for
use up to 31st March 2026, with the option to extend by
up to 31st March 2028, if required.

Decision

RECORD OF OFFICER EXECUTIVE DECISION
 

Date of Decision:

17th July,
2023

Decision Maker:
(Including Job
Title)
 

Strategic Director,
Regeneration & Environment

Specific Delegation:
(If any)
 

Section 4C6 of
Constitution, Appendix 9, Responsibility for functions (Strategic
Director of Regeneration and Environment – Delegated
Executive Functions)

Brief Description of
Decision:
 
 

Approval of Contract Award to a
Contractor for Small Scale Capital Works on Priority Flood
Alleviation Scheme Projects

Reasons for the
Decision:
 
 

Approval of Contract Award for
a Contractor to a Small Scale Capital Works to support delivery of
the Council’s 6 Priority Flood Alleviation Scheme projects,
as a call off via the YORhub framework. This contract is a direct
award. This takes account of the difficult situation in the current
market, evidenced by the shrinking number of tenders received when
undertaking a competitive tender process on this type of
specialised work.
The contract would be managed
in 2 Stages:

•       
Stage 1
– pre-construction advice, delivered via a NEC3 Professional
Services Contract (PSC)

•       
Stage 2
– construction work, delivered via NEC3 Construction
Contract(s)

One set of terms and conditions will be required for
the entirety of the Stage 1 work.
The Stage 2 work will be
negotiated as part of the Stage 1 work, and this is expected to
require more than one NEC3 Construction Contract. The number of
contracts required will depend on the nature and locations of the
construction works.
The Award Value is £4m
(excluding VAT).
The contract is
intended for use up to 31st March 2026, with the option
to extend by up to 31st March 2028, if
required.
 
The contract uses an
industry standard form of contract (i.e. NEC3) and includes
additional clauses of contract to ensure that the supplier works
within financial approval limits that are within the approved
budget for the 6 Flood Alleviation Scheme projects, thereby
reducing financial risk to the Council.
 

Details of alternative
options considered and rejected:
 

Consideration has been
given to alternative procurement routes, including a competitive
tender process, however, there is insufficient information
available to fully define the scope and programme.
 
To develop such scope
would require significant input from Consultant’s (who have
already been procured), however, this would significantly delay the
ongoing delivery of the Consultant’s “Shovel
Ready” pre-construction process. Even with this additional
level of detail, to undertake a competitive tender process with
Contractors, the  comparison of
alternative tenders would still be very difficult.
 
The above would result
in a prolonged and inefficient route to market, and would
jeopardise the ability of the Council to meets its commitment to
complete the pre-construction element of the 6 projects by
31st December 2024.
 

Conflicts of interest
declared by any Executive Member consulted by the decision maker
which relates to the decision:

N/A

Dispensations
Granted:
(If any)

N/A
 

Reports or parts of
reports considered

Procurement Business
Case, as Approved by the Assistant Strategic Director, Regeneration
& Environment.

 
I
certify that this is a true record of the executive decision to
approve the Contract Award to a Contractor for Small
Scale Capital Works on Priority Flood Alleviation Scheme
Projects
 
Signed by
the Decision Maker  

Dated:      
17th July, 2023
Name:
       Paul
Woodcock                           
Job
Title:   Strategic Director, Regeneration &
Environment