Purpose

The Council has a requirement
to undertake annual Asset Valuations of its Assets for Financial
Reporting, in accordance with IFRS 13 and 16.  Due to capacity issues within the Strategic Asset
Management Team, it is necessary to commission external valuers to
undertake all valuations required as of 31 March 2026.

Decision

Decision(s): That
 

(1)

approval be given to proceed with a
procurement process using the Fusion 21 Framework for the
appointment of Avison Young through a direct award to undertake all
asset valuations required as of 31 March 2026; and
 

(2)

the Executive Director – Regeneration
Economy and Assets to be authorised to approve and sign the
relevant documentation to grant the contract award

 
 
Reason(s) for the
Decision(s):
 
The Council has a statutory
requirement to undertake annual Asset Valuations of its Assets for
Financial Reporting in accordance with IFRS 13 and 16. 
 
Avison Young were procured
using the Fusion 21 Framework to assist with the asset valuation
exercise as of 31 March 2025 and undertook 70
valuations.  The remainder of the
valuations were undertaken by valuers within the Council’s
Strategic Asset Management Team. 
 
Due to the successful
commission in 2025, discussions have been held with the
Council’s Procurement Team, and it has been agreed that the
same framework can be utilised for the Asset Valuation Exercise for
2026 and that Avison Young can be procured to undertake all the
asset valuations as of 31 March 2026. 
However given the larger number of valuations to be procured,
Cabinet Member Approval is required to authorise this.
 
This is a request for one year
only whilst we review the future strategy for this
requirement.  A further report may be
required for a greater value/number of years in relation to the
statutory valuations required for 2027 onwards.
 
The rules of this particular
framework facilitate direct award and so the Council is adhering to
those rules.  The use of a Compliant
Framework ensures there should be no grounds for an organisation to
challenge the award.
 
As soon as the final number of
valuations is quantified, Avison Young will forward a fee proposal
for the works, which includes the valuations of the freehold and
long leasehold interests of the Strand Shopping Centre.  The fee proposal will also include an allowance
for dealing with auditors queries post valuations.
 
In accordance with the Council
Contract Procedure Rules, this report requests that authority be
delegated to the Executive Director – Regeneration, Economy
and Assets to approve the contract award.
 
 
 
Alternative Options
Considered and Rejected
All asset valuations could be undertaken in
house by the valuers within Property and Strategic Asset
Management, however due to capacity issues and other priorities,
this option has been dismissed